Predictive market platform, Polymarket, given green light for resumption in the U.S.

In a significant move, Polymarket, a pioneering prediction market platform, is set to return to the US market following a three-year absence. This comeback, which occurred in record timing, is being hailed as a dramatic turnaround and a testament to the impressive work of the US Commodity Futures Trading Commission (CFTC) and its staff.

The CFTC, under its acting chair, has given approval for Polymarket's relaunch. In a statement, the CFTC referred to prediction markets as an "important new frontier." To facilitate its return, Polymarket completed a $112 million acquisition of QCEX, a CFTC-licensed derivatives exchange and clearinghouse. This acquisition provided Polymarket with the necessary infrastructure to meet US compliance standards.

Polymarket allows users to buy and sell shares tied to the outcome of future events. This unique feature has attracted fresh backing from 1789 Capital, an investment company aimed at funding the next era of American exceptionalism, with Donald Trump Jr. as a backer.

Interest in Polymarket has spiked, particularly around political contracts related to the 2024 presidential race. This surge in interest is not surprising given the platform's ability to offer wagers on a wide range of events, including elections, government policies, sporting events, and entertainment.

Rival prediction market platform Kalshi has already tested the waters in the US market. Kalshi secured permission to list contracts tied to political outcomes after challenging the CFTC in court. The CFTC's Division of Market Oversight and the Division of Clearing and Risk issued a no-action letter to Polymarket, offering relief on some reporting and recordkeeping rules for event contracts.

The return of Polymarket to the US market represents a pivotal moment, as demand for political and event-based betting is booming. Nick Jones, founder of crypto firm Zumo, stated that prediction markets, including Polymarket, could potentially be bigger than the stock market.

However, it's worth noting that there are no search results providing information about which institution bought Polymarket in 2022 to meet US regulatory standards. Additionally, Kalshi was valued at $2 billion at the end of June following a $185 million fundraising round.

Polymarket has operated overseas since exiting the US market. Its return to the American market is set to redefine the prediction market landscape, offering a new avenue for investors and enthusiasts alike to engage with future events.

Predictive market platform, Polymarket, given green light for resumption in the U.S.