Some companies get a slap on the wrist. Others get shown the door. Two years ago, Polymarket got shown the door by American regulators. Now, they’ve been invited back inside.
- Polymarket, an onchain betting market, has been officially approved to resume operations in the U.S. after being barred in 2022 by the Commodity Futures Trading Commission (CFTC). This return was facilitated by Polymarket’s acquisition of a designated contract market, QCX.
- The CFTC granted approval via an Amended Order of Designation, requiring Polymarket to adhere to all regulations applicable to federally regulated U.S. exchanges, including new surveillance and reporting systems.
- The regulatory shift coincides with surging activity in prediction markets like Polymarket and Kalshi, suggesting regulators are increasingly accepting these platforms as legitimate financial tools.
The onchain betting market, born in New York City, is officially approved to resume operations in the United States. The U.S. Commodity Futures Trading Commission, the very agency that barred them in 2022, just gave them the green light. It’s a comeback story with a distinctly crypto flavor.
The CFTC didn’t just forget the past. It issued what’s called an Amended Order of Designation. Think of it as a new rulebook for Polymarket to play by. The company can now run an intermediated trading platform, but it has to follow all the requirements that apply to federally regulated U.S. exchanges.
This isn’t a pardon. It’s a promotion earned the hard way. Back in 2022, the trouble was simple. The CFTC said Polymarket was operating an unregistered derivatives exchange. To fix that, Polymarket went out and bought one. Their acquisition of QCX, a designated contract market and clearinghouse, laid the tracks for this return journey.
It was a clever move. Instead of building a regulated entity from scratch, they bought a ready-made one and plugged it into their system. This is the kind of strategic play that separates fleeting projects from lasting businesses.
CEO Shayne Coplan framed it as a step toward maturity. “This approval allows us to operate in a way that reflects the maturity and transparency that the U.S. regulatory framework demands,” he said in a statement. It’s the right thing to say when the regulators are listening again.
Coplan also thanked the agency for its “constructive engagement.” That’s polite corporate speak for a long, probably expensive, series of meetings and paperwork. As part of the deal, Polymarket had to develop new systems for surveillance, clearing procedures, and regulatory reporting. They are now subject to the Commodity Exchange Act, just like the old-school exchanges in Chicago and New York.
A Market Finding Its Moment
So why the change of heart from the CFTC? The agency has historically treated betting markets like an academic project, a curiosity. But the ground is shifting. A successful legal challenge by Polymarket’s rival, Kalshi, over offering contracts on U.S. elections seems to have softened the agency’s stance.
The regulators appear to be moving toward a more hands-off approach. They aren’t abandoning their posts, but they are recognizing that these markets are growing up. And are they ever growing.
Polymarket and Kalshi have both seen a surge in activity. September and October were record months for their combined trading volume. People are clearly interested in placing bets on everything from election outcomes to economic data releases.
This approval is the capstone on a wild year for Polymarket. While working on their U.S. return, they were also striking major deals. They signed data licensing agreements with giants like Google Finance and even the National Hockey League. When your odds show up next to a stock ticker, you know you’ve hit a different level.
The big money noticed. Intercontinental Exchange, the parent company of the New York Stock Exchange, has backed the firm. An investment from the heart of traditional finance is a powerful vote of confidence.
All this activity has sent Polymarket’s valuation soaring. The startup was valued at $9 billion in October. Now, it’s reportedly seeking a new valuation somewhere between $12 and $15 billion. Not bad for a company that was, until this week, locked out of its home market.
And in true crypto fashion, there are hints of a token. Company leadership, including Coplan, has suggested a native POLY token airdrop could be on the horizon. It’s a familiar playbook for rewarding early users and sparking even more growth.
The world of prediction markets is getting crowded and strangely diverse. In a sign of the times, President Donald Trump’s media company, Truth Social, is reportedly building its own prediction market with Crypto.com. When politicians and sports leagues are getting involved, you know the idea has broken out of its niche.
Polymarket’s return to the U.S. isn’t just a victory for one company. It’s a signal that prediction markets are being accepted as a legitimate financial tool. The regulators have set the rules of the road. Now we get to see how fast this thing can go.
