Homegrown NYC startup Polymarket allowed to resume US operations following CFTC reversal

Leading onchain betting market Polymarket is officially approved to re-enter the United States following approval from the U.S. Commodity Futures Trading Commission. 

The CFTC issued an Amended Order of Designation, according to an announcement on Tuesday, “permitting Polymarket to operate an intermediated trading platform subject to the full set of requirements applicable to federally regulated U.S. exchanges.”

Polymarket was barred by the CFTC from operating in the U.S. after a 2022 enforcement case for operating an unregistered derivatives exchange. The firm has since acquired QCX, a designated contract market and clearinghouse, which laid the groundwork for its U.S. return.

Relaunching in the U.S. is perhaps the capstone to a gangbuster year for Polymarket, which has seen the firm (often alongside rival Kalshi) strike data licensing deals with organizations from Google Finance to the National Hockey League and attract investment and backing from NYSE parent Intercontinental Exchange.

The startup, founded in 2020 in New York City, is now reportedly seeking a valuation between $12-$15 billion. It was last valued at $9 billion in October. Polymarket higher-ups, including CEO Shayne Coplan, have also hinted that the platform is looking to launch a native POLY token.

Polymarket and Kalshi have both seen rising growth, particularly in the last several months. Both September and October closed as record months in terms of combined volume for the firms. 

CFTC changes

Historically, the CFTC has taken a cautious approach to betting markets, which, like the Iowa Electronic Markets, were often treated as an academic curiosity. However, the agency has since adopted a largely hands-off approach to the nascent sector following Kalshi’s successful legal appeal over offering contracts related to the 2024 U.S. elections.

As part of the CFTC’s amended order, Polymarket has developed additional surveillance and supervision systems, clearing procedures, and regulatory reporting capabilities. “Polymarket remains subject to all provisions of the Commodity Exchange Act and applicable CFTC regulations governing Designated Contract Markets, including self-regulatory obligations,” the startup wrote.

"This approval allows us to operate in a way that reflects the maturity and transparency that the U.S. regulatory framework demands,” Coplan said in a statement. “We're grateful for the constructive engagement with the CFTC and look forward to continuing to demonstrate leadership as a regulated U.S. exchange."

Of note, President Donald Trump’s digital media firm Truth Social is developing a prediction market with Crypto.com.