As Donald Trump returns to the White House and the cryptocurrency industry welcomes a favorable policy environment, the two investigations launched by the U.S. government against the prediction platform Polymarket at the end of Biden's term have quietly come to an end.
(Bloomberg) cited sources familiar with the matter stating that the U.S. Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC) had earlier this month notified Polymarket, confirming that these two investigations had concluded.
The U.S. Department of Justice targeted Polymarket last year for investigation, citing that the platform allegedly violated regulations by allowing U.S. users to place bets, contrary to a prior agreement with the CFTC. For this reason, the FBI even raided Polymarket CEO Shayne Coplan's apartment in New York last November and seized his phone and electronic devices.
A spokesperson for Polymarket emphasized at the time that this move was an 'obvious act of political retaliation,' but the spokesperson did not further respond regarding why they held this view.
Recently, the U.S. government's regulation of prediction platforms has noticeably relaxed. The CFTC withdrew its obstruction against another platform, Kalshi, in May this year, signaling a policy shift. Now, the cancellation of the investigation into Polymarket is also seen as further confirmation of the easing of regulatory pressure.
With Trump back in the White House, U.S. digital asset policy has completely shifted. The SEC has quietly withdrawn more than a dozen investigations and lawsuits against cryptocurrency operators; banking regulators have also reduced the intensity of oversight on financial institutions participating in cryptocurrency activities.
"Political storm lifted! The U.S. Department of Justice terminates the investigation into Polymarket". This article was first published on (Blockcast).
