The U.S. Commodity Futures Trading Commission (CFTC) has granted Polymarket a no-action letter, effectively permitting the prediction market platform to return to the United States after being banned in 2022. The regulator announced it would not pursue enforcement actions against QCX LLC and QC Clearing LLC—entities acquired by Polymarket in July for $112 million—for certain swap data reporting and recordkeeping failures related to event contracts.
Polymarket CEO Shayne Coplan confirmed the development on X, stating, "Polymarket has been given the green light to go live in the USA by the CFTC. Credit to the commission and staff for their impressive work. This process has been accomplished in record timing." The platform, which settled with the CFTC in 2022 over allegations of operating an unregistered designated contract market, has since focused on offshore operations but gained significant traction by hosting high-volume markets on U.S. politics, such as the 2024 presidential election, which saw $3.7 billion in trading volume and accurately predicted Donald Trump's victory.
The acquisition of QCX, a CFTC-licensed derivatives exchange, was a strategic move to facilitate Polymarket's reentry into the U.S. market. Recent developments, including Donald Trump Jr. joining Polymarket's advisory board and investing in the company, underscore the platform's efforts to capitalize on loosened financial regulations. However, the no-action letter specifically addresses QCX and its clearinghouse, not Polymarket directly, leaving some operational details unclear.