Polymarket receives strategic investment from 1789 Capital and invites Donald Trump Jr. to the advisory board, marking a new step in efforts to re-enter the U.S. market under strict legal frameworks.
The estimated investment of tens of millions of USD (Axios) comes as Polymarket accelerates its legalization efforts in the U.S., following the CFTC penalty in 2022 and the acquisition of the licensed derivatives exchange QCEX for $112 million in July 2025.
MAIN CONTENT
Polymarket appoints Donald Trump Jr. to the advisory board, following a strategic investment from 1789 Capital.
Efforts to re-enter the U.S.: submitting rulebook, promoting a comeback, acquiring QCEX for CFTC licensing.
Controversy increases around election betting and the integrity risks in sports, amid tight oversight from the CFTC and NFL.
What is Polymarket?
Polymarket is a prediction market platform launched in 2020, allowing users to bet on life events using cryptocurrency, from presidential elections to popular culture.
The platform quickly grew to become one of the largest prediction markets in the world, reaching millions of USD in volume daily, but also faced legal scrutiny, especially in the U.S. This development reflects the role of prediction markets in aggregating crowd expectations, a theme noted in academic research on the accuracy of prediction markets (University of Iowa, Iowa Electronic Markets; NBER, Wolfers & Zitzewitz, 2004).
Who is 1789 Capital and how do they position themselves?
1789 Capital describes itself as a politically oriented fund, investing in companies they believe promote 'American exceptionalism.'
Donald Trump Jr. became a partner in this fund in 2024. The investment in Polymarket shows that 1789 Capital is betting on the prediction market as an expandable information infrastructure. Axios estimates the investment size at 'tens of millions of USD', although both parties did not disclose details.
Why did Donald Trump Jr. join the advisory board of Polymarket?
He joined the advisory board at the same time as 1789 Capital's strategic investment, to support the platform during the legal restructuring and growth phase in the U.S.
Trump Jr.'s advisory role could help Polymarket expand its network and policy voice, especially as prediction markets are under heated debate in Washington. The involvement of a public figure is also a signal of ambitions to accelerate the platform's trading and communications.
"Polymarket helps cut through media bias and the opinions of those 'experts' by allowing people to bet on what they truly believe will happen in the world."
"– Donald Trump Jr., Partner 1789 Capital, stated in a press release, PR Newswire, 2025"
How much is the investment from 1789 Capital?
Both parties did not disclose the terms, but Axios estimates it to be in the tens of millions of USD.
Non-public valuation creates flexible room for subsequent funding rounds. In the context of cautious venture capital flow, a significant investment linked to a political figure could help Polymarket bolster market confidence, especially as they pursue a legal pathway in the U.S.
What legal troubles has Polymarket faced with the CFTC?
In 2022, CFTC fined Polymarket $1.4 million for operating an unregistered swap platform and required blocking U.S. users.
This move forces Polymarket to restructure to meet regulations. CFTC's strictness towards prediction markets is not new; precedents show that the agency views prediction contracts as derivative instruments requiring oversight, especially when related to political and real economic matters. Source: original information; CFTC.
How is Polymarket re-entering the U.S. market?
In July 2025, Polymarket purchased the CFTC-licensed derivatives exchange QCEX for $112 million and announced the conclusion of the investigation by the CFTC and the Department of Justice.
In August 2025, the platform announced a rulebook in the U.S. and ran digital ads about its return. These steps indicate a strategy of 'compliance first, growth later': acquiring existing licenses, standardizing rules, and transparently communicating the operational framework. Source: CFTC rulebook, SBC Americas.
How large is the betting volume for the 2024 U.S. election on Polymarket?
Polymarket handled over $3.6 billion in bets for the 2024 presidential election, with the Trump–Harris pair alone accounting for about $2.7 billion.
This scale demonstrates the superior appeal of the political segment. According to Polymarket's event page, high participation levels raise concerns from lawmakers about manipulation risks and conflicts of interest, but also reinforce the role of prediction markets as tools for measuring expectations. Source: Polymarket, Presidential Election Winner 2024.
How is the controversy surrounding election betting developing?
In August 2024, Senators Elizabeth Warren, Jeff Merkley, and colleagues urged the CFTC to ban election betting, citing risks to public trust.
Core argument: allowing 'massive' betting while donating to candidates, and trading based on insider information, could undermine the integrity of elections. This move puts all plans to list political contracts in the U.S. under higher scrutiny standards. Source: letter to CFTC, 08/2024.
"Allowing people to place unusual bets while simultaneously contributing to a candidate or party, and allowing insiders to bet with non-public information, will continue to undermine public trust in the electoral process."
"– Senator Elizabeth Warren and colleagues, letter to CFTC, 08/2024, source: referenced in original content"
What does the NFL warn about prediction markets like Polymarket?
The NFL recently warned that prediction markets could pose risks to the integrity of the league if they lack compliance and oversight systems like licensed bookmakers.
According to Axios, concerns focus on the risk of manipulation if monitoring data, behavioral control, and irregular reporting do not meet sportsbook standards. This adds pressure for prediction platforms as they expand into the sports sector in the U.S. Source: Axios, 25/08/2025.
Is Polymarket raising new funds and what is its valuation?
Despite the controversy, on July 21, Polymarket was reported to be finalizing a $200 million funding round with a valuation of $1 billion.
If completed, this would be a significant milestone, placing Polymarket among the technology unicorns in the cryptocurrency-based prediction market sector. High valuation requires product design to comply with legal standards and risk control, especially in the political and sports sectors.
Who is the competitor Kalshi and what is their relationship with the CFTC?
Kalshi is a major competitor in the U.S. and has repeatedly clashed with the CFTC over plans to list political contracts, including Congressional control.
Scrutiny intensified after Representative Dina Titus called for the CFTC to investigate conflicts of interest involving Brian Quintenz, former CFTC commissioner and a board member of Kalshi, delaying Senate approval. Source: Axios, 2025.
How do Polymarket and Kalshi differ legally and operationally?
Both are prediction markets, but the legal pathways differ: Polymarket re-enters through acquiring a licensed exchange, while Kalshi achieved designated contract market status from CFTC early on.
The common point is regulatory pressure on political contracts. Both must prove oversight mechanisms, limit manipulation, and protect investors, especially after warnings from lawmakers and sports organizations. Source: CFTC; Axios; original content.
Polymarket criteria Kalshi Launch 2020 2020 Legal status in the United States Buy QCEX licensed by CFTC (07/2025) to re-enter Approved by CFTC as a Designated Contract Market (DCM) in 2020 (CFTC) Major controversy Fined $1.4 million (2022); 2024 election betting Proposed listing of political contracts; conflicts of interest raised Reference sources CFTC; Polymarket; Axios CFTC; Axios
What does this deal mean for prediction markets and cryptocurrency?
Investment from 1789 Capital and the appointment of Donald Trump Jr. strengthen Polymarket's position in the race for legalization and expanding its information channel based on betting.
If compliance framework is maintained, Polymarket could become a standard for public prediction infrastructure, supplementing traditional reporting. Studies like Iowa Electronic Markets and NBER indicate that prediction markets can efficiently aggregate information, but in the United States, sustainable success must come with risk control mechanisms equivalent to financial markets.
Video: Polymarket in the new context
Quick view of Polymarket's context after investment and legal pathway through the video below.
https://www.youtube.com/watch?v=0BX9AlZw1UI" title="Polymarket context video" width="560" height="315
Frequently asked questions
Has Polymarket legally operated in the U.S. yet?
Polymarket was fined by the CFTC in 2022 and blocked U.S. users. In July 2025, they acquired the CFTC-licensed QCEX and published the U.S. rulebook, indicating a supervised re-entry pathway. Source: CFTC; rulebook.
Why did the CFTC previously fine Polymarket?
CFTC fined $1.4 million for Polymarket operating an unregistered swap platform and required blocking U.S. users. Source: CFTC, 2022.
What role does Donald Trump Jr. play at Polymarket?
He was invited to the advisory board after a strategic investment from 1789 Capital, where he is a partner since 2024. Source: PR Newswire; original content.
What is the betting volume for the 2024 election on Polymarket?
Over $3.6 billion, with the Trump–Harris pair alone accounting for about $2.7 billion. Source: Polymarket, event Presidential Election Winner 2024.
How much is the investment from 1789 Capital in Polymarket?
Not disclosed; Axios estimates it to be in the tens of millions of USD. Source: Axios.
Source: https://tintucbitcoin.com/trump-jr-vao-hdqt-polymarket-nham-my/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated on the latest news in the cryptocurrency market and not miss any important information!