The U.S. Department of Justice (DOJ) and Commodity Futures Trading Commission (CFTC) have terminated investigations into crypto-based prediction market platform Polymarket, according to Bloomberg reports citing anonymous sources. The probes, initiated last year, examined allegations that Polymarket permitted U.S. users to access its services despite regulatory ambiguities.
This development follows Polymarket's 2022 settlement with the CFTC over registration failures. The DOJ's separate investigation focused on potential gambling law violations. The closure signals a continuation of recent federal trends under the Trump administration, which has dropped multiple crypto-related investigations, drawing both community applause and regulatory criticism.
While the resolution potentially enables Polymarket to expand U.S. operations, its legal standing remains unclear. The platform recently faced community backlash over disputed bet outcomes, adding complexity to its regulatory reprieve. Authorities haven't disclosed investigation terms, leaving expansion prospects uncertain.