Crypto prediction platform Polymarket has announced its highly anticipated return to the U.S. market. This development follows CFTC approval for the platform to operate as an exchange in the U.S. and comes amid heightened interest in prediction markets.
Polymarket Returns To The U.S. With App Launch
In an X post, Polymarket announced that it is now rolling out its U.S. app to those on the waitlist, marking its return to the country. The prediction platform is launching with the sports markets and plans to integrate other markets afterwards.
This development comes just days after the crypto platform received a key approval from the CFTC, enabling its return to the U.S. markets. As CoinGape reported, the CFTC issued an amended order of designation, which allows the platform to operate an intermediated trading platform.
Polymarket left the U.S. markets in 2022 after the CFTC imposed a ban for regulatory violations. The platform also had to pay a $1.4 million fine following a settlement with the commission.
Meanwhile, it is worth mentioning that the platform was under a Department of Justice (DOJ) investigation during the Joe Biden administration over whether it was accepting trades from U.S. users. The FBI infamously raided Polymarket CEO Shayne Coplan’s home last year during the U.S. presidential elections. However, as CoinGape reported, the DOJ ended the investigation in July.
Polymarket’s U.S. return comes as interest in prediction markets continues to heat up. Thanks to this interest, the platform has seen its valuation skyrocket this year, raising $2 billion in October at a $9 billion valuation.
The platform’s return to the U.S. provides a major boost and is likely to provide added momentum. Notably, Polymarket hit a new all-time high (ATH) of $3.73 billion and an all-time high of 494,690 active traders last month, and will look to reach new highs this month.
Is Kalshi’s Leverage Gone Following Its Rival’s U.S. Return?
In an X post, market pundit Geiger Capital stated that Polymarket’s U.S. return will lead to the platform taking market share from Kalshi and the traditional sportsbooks. Notably, Kalshi has operated in the U.S. since 2021 as a CFTC-regulated exchange, which gave it an edge over Polymarket.
However, the market dynamics could change now with the top two prediction platforms operating as a CFTC-regulated exchange. Kalshi recently launched tokenized prediction markets on Solana, a move that is expected to appeal to crypto users. Notably, Polymarket operates on the Polygon network, which may have given it the crypto advantage before now.
Kalshi co-founder Tarek Mansour recently announced that they had raised $1 billion at an $11 billion valuation. Meanwhile, the platform just secured a CNN partnership amid heightened competition in the predictions markets space.
Source: https://coingape.com/crypto-prediction-platform-polymarket-relaunches-in-u-s-following-cftc-approval/
