Polymarkets returns to the US market with the green light from the US CFTC

Polymarket, the prediction market that became popular during the 2024 US presidential election, has now officially received the green light from US regulators and can re-launch in the US market.

In order to return to the US market, Polymarket acquired QCEX, a derivatives exchange with an operating license, in July this year.

The latest news is that QCEX's two entities, QCX and derivatives clearing house QC Clearing, received a "No-Action Letter" from the U.S. Commodity Futures Trading Commission (CFTC) on Wednesday, exempting them from certain information disclosure and data reporting obligations. This allows the two companies to operate within a specific scope without being prosecuted by law enforcement agencies.

For Polymarket, this letter marks the official return to the US market after its withdrawal from the US market in 2022 due to regulatory pressure. In fact, with the US government's recent easing of its hostility towards the cryptocurrency industry, Polymarket has gradually emerged from the shadows after the federal investigation.

The CFTC's decision, issued by the Division of Market Regulation and the Division of Clearing and Risk, is similar to its previous exemption from reporting requirements for binary options trading. While the letter did not directly mention "prediction markets," it did specify that QCX was exempt from recordkeeping requirements for "event contracts."

Polymarket CEO Shayne Coplan wrote on the social platform X:

Polymarket has received approval from the CFTC to launch in the US. Thanks to the Commission and the dedicated team, this process was completed in record time. Stay tuned for more updates.

It is worth noting that although Brian Quinten, US President Trump's nominee for CFTC Chairman, has not yet been confirmed by the Senate, he has close ties with another prediction market platform, Kalshi, and has publicly stated that "event contracts" can be a suitable hedging tool.

The article "U.S. CFTC gives the green light: Polymarket returns to the U.S. market and starts a new chapter" was originally published on (Block Guest).