U.S. Regulator Grants Authorization for Polymarket's Cryptocurrency Platform Debut

Polymarket, a crypto-based prediction platform, has received approval from the Commodity Futures Trading Commission (CFTC) to operate in the United States. This significant move marks a major step towards regulating crypto markets with mainstream financial controls.

The approval, issued on September 3, came in the form of a no-action letter. The decision was made by the CFTC's Division of Market Oversight and the Division of Clearing and Risk. Polymarket can now operate under certain conditions without any enforcement actions.

The move follows a federal investigation that was dropped earlier this summer. In July, Polymarket announced its plans to return to the U.S. after acquiring derivatives exchange QCEX. The approval covers Polymarket's operations through QCX, a designated contract market, and QC Clearing, a derivatives clearing organization.

Donald Trump Jr. invested in Polymarket and joined its advisory board last month. Elon Musk's X announced a partnership with Polymarket in June. These developments underscore the growing interest and support for Polymarket in the industry.

Shayne Coplan, Polymarket's CEO, celebrated the milestone, stating that Polymarket has been given the green light to go live in the USA by the CFTC. The approval signals strong user engagement and market activity, despite the growth being below the platform's January peak.

The increased reach in the U.S. will provide crypto enthusiasts and investors with a legal and safe means of engaging in prediction markets. Swap data reporting and recordkeeping rules will not be enforced on Polymarket's event contracts under "narrow circumstances." However, the name of the subsidiary founded by Polymarket and acquired in July 20XX that led to the resumption of Polymarket's activities in the USA is not provided in the available search results.

The approval of Polymarket to operate in the United States is a positive development for the crypto industry, as it demonstrates the potential for mainstream financial regulation of crypto markets. The ex-Polymarket and Kalshi team recently raised $15M for a new prediction platform, further indicating the growing interest and investment in the prediction market space.

U.S. Regulator Grants Authorization for Polymarket's Cryptocurrency Platform Debut