Polymarket Secures CFTC Approval for U.S. Market Re-entry Following QCX Acquisition

New York – Polymarket, the crypto-based prediction market, has received the green light from the U.S. Commodity Futures Trading Commission (CFTC) to resume operations in the United States. The approval, announced on September 3, 2025, marks a significant regulatory milestone, allowing the platform to re-enter the U.S. market after a three-year hiatus. Polymarket CEO Shayne Coplan stated on X, formerly Twitter, that the company "has been given the green light to go live in the USA by the @CFTC."

Founded in 2020, Polymarket rapidly grew to become the world's largest prediction market, enabling users to bet on outcomes ranging from U.S. election results to cryptocurrency prices using digital assets. However, the platform faced regulatory challenges in 2022 when the CFTC charged it with offering illegal off-exchange event-based binary options to U.S. users, resulting in a $1.4 million fine and a ban from the U.S. market. Investigations by the Department of Justice (DOJ) and the CFTC were officially closed in July 2025.

The path to re-entry was paved by Polymarket's strategic acquisition of QCX, a CFTC-licensed derivatives exchange and clearinghouse, for $112 million in July. The CFTC's Division of Market Oversight and the Division of Clearing and Risk issued a "no-action position" to QCX, effectively exempting Polymarket from certain swap data reporting and recordkeeping regulations for event contracts. This critical regulatory concession provides the legal framework for Polymarket to operate compliantly under CFTC oversight.

The approval comes amidst increasing interest and investment in the prediction market sector. Just a week prior to the CFTC announcement, 1789 Capital, a venture capital fund joined by Donald Trump Jr. in late 2024, invested in Polymarket. Donald Trump Jr. also joined Polymarket's advisory board. Furthermore, Elon Musk's X announced a partnership with Polymarket in June, underscoring growing mainstream engagement with the platform.

Polymarket's return to the U.S. market aligns with a broader shift in the regulatory landscape, as the CFTC has adopted a more accommodating stance towards prediction markets, influenced in part by similar regulatory successes by competitors like Kalshi. This development is expected to boost innovation within the decentralized finance sector and could signal a more flexible approach from U.S. regulators towards emerging financial technologies.