Homegrown NYC startup Polymarket allowed to resume US operations following CFTC reversal
Polymarket can resume US operations after the CFTC issued an Amended Order of Designation, allowing it to operate as a regulated exchange.Summary
The onchain betting market Polymarket has been approved by the U.S. Commodity Futures Trading Commission (CFTC) to resume operations in the United States. The CFTC issued an Amended Order of Designation, permitting Polymarket to function as an intermediated trading platform subject to the full requirements of federally regulated U.S. exchanges. This follows a 2022 enforcement case where Polymarket was barred for operating an unregistered derivatives exchange. The path for its return was paved after Polymarket acquired QCX, a designated contract market and clearinghouse. This regulatory approval caps a successful year for the NYC startup, which has seen significant growth, data licensing deals with entities like Google Finance and the NHL, and investment from NYSE parent Intercontinental Exchange. Polymarket is reportedly seeking a valuation between $12-$15 billion and may launch a native POLY token. The CFTC's shift reflects a broader, less cautious approach to the nascent prediction market sector, contingent on Polymarket implementing enhanced surveillance, clearing, and reporting systems.
(Source：The Block)