Polymarket has confirmed it has secured a regulatory green light to re-enter the US market, with approval to offer prediction markets and legal sports betting across all 50 states.
The Commodity Futures Trading Commission (CFTC) announced on 3 September that its staff has issued a “no-action position” on Polymarket-owned designated contract market (DCM) QCX LLC and designated clearing organization (DCO) QC Clearing LLC, collectively referred to as QCEX. The decision relates to swap data reporting and recordkeeping regulations for event contracts.
According to the CFTC’s statement, the regulator “will not recommend enforcement action” against QCEX or its participants for non-compliance with certain swap-related recordkeeping requirements or for failing to report data to swap data repositories on binary option and variable payout transactions.
Not full approval — Yet
The CFTC’s letter stressed that the no-action position was issued by the Division of Market Oversight and the Division of Clearing and Risk, and does not constitute final Commission approval. “This letter does not state any legal conclusion regarding the characteristics or legality of QCEX Contracts or the conduct of any person covered by the no-action position,” the CFTC clarified. “This letter and the no-action position taken herein are not binding on the Commission.”
Despite these caveats, Polymarket CEO Shayne Coplan hailed the development on X (formerly Twitter), saying the decision effectively clears the way for Polymarket to operate under CFTC oversight. Coplan described the progress as being “accomplished in record time.” Polymarket Sports said in a post, “Legal sports betting on the world’s largest prediction market is coming to all 50 states.”
Return after regulatory exit
Polymarket halted US trading in January 2022, after reaching a settlement with the CFTC for failing to register with the regulator. The company subsequently faced investigations by the CFTC and the Department of Justice into allegations it continued serving US customers, but those probes were later dropped under the Trump administration.
In July, Polymarket acquired QCEX and QC Clearing in a $112 million deal, giving the company a fast-track route back into the American market. At the time, the company said the purchase “paves the way for US users to access Polymarket in the near future within a fully regulated, US-compliant framework.”
US launch imminent
Since then, Polymarket has stepped up preparations for its official US relaunch. The company has rolled out a new social media campaign, encouraged sign-ups for launch updates, and filed revised documentation with the CFTC. Its new rulebook, submitted in August, takes effect on 5 September, coinciding with the start of the NFL season, fuelling speculation that Polymarket’s American comeback could happen as soon as this week.
The company has also secured several high-profile partnerships and advisors. It is now the official prediction market partner of X, working on an integrated product that will merge Polymarket’s markets with X’s real-time insights and Grok AI. In August, Donald Trump Jr. joined Polymarket’s advisory board following investment from his venture capital fund, 1789 Capital.
Polymarket, founded in 2020, has grown into one of the world’s largest prediction markets by trading volume. Its users bet on outcomes of real-world events ranging from elections and economic indicators to cultural debates and sporting contests. The firm says these markets provide “accurate, real-time insights into public sentiment” by letting traders back their beliefs with money.
“Polymarket cuts through media spin and so-called ‘expert’ opinion by letting people bet on what they actually believe will happen in the world,” Trump Jr. said in a statement announcing his new role. “I am pleased that 1789 Capital is investing in Polymarket and am honoured to join the company’s advisory board. I look forward to working with the team to advance its mission of bringing truth and transparency to everyone – including the US.”
In a separate development, a group of Polymarket veterans raised $15 million to launch The Clearing Company, a platform that aims to take prediction markets out of their regulatory grey zone and into mainstream finance. Backed by Union Square Ventures, Haun Ventures, Variant, Coinbase Ventures, and others, the team says it is building a regulated, onchain marketplace designed for broader adoption.
Growing competition in sports contracts
Polymarket’s return comes at a time of heightened activity in the prediction market space. Rival platform Kalshi has been rapidly expanding its sports betting offerings, introducing prop-style and parlay-style markets ahead of the NFL season. With the CFTC’s no-action relief in hand and momentum building, Polymarket is now positioned to re-emerge as a dominant force in the regulated US prediction market and sports betting sector.
Sportsbooks are also actively trying to enter the prediction market space. Recently, Underdog kicked off September with a major industry first, officially bringing sports event contracts to market through a new partnership with Crypto.com. The announcement, made on 2 September, marks the first time a sportsbook operator has launched sports event contracts.
Sports betting giant FanDuel announced a partnership with derivatives marketplace CME Group to create a new joint venture aimed at launching an event contracts platform. The initiative will allow users to place simple, fully-funded yes-or-no wagers on financial market events, beginning with trades for as little as $1. Meanwhile, FanDuel rival DraftKings was reportedly in talks to acquire Railbird Exchange, a newly federally licenced prediction market platform based in the United States. The details of the reported deal are still under wraps. A company spokesperson told SiGMA News, “DraftKings speaks to a variety of companies regarding various matters in the normal course of business, and it is our general policy not to comment on the specifics of any of those discussions.”
