CFTC Grants Polymarket Authority to Operate as Regulated US Exchange
Polymarket secured a critical regulatory victory today, announcing that the U.S. Commodity Futures Trading Commission (CFTC) has issued an Amended Order of Designation.
This legal approval permits the platform to operate as an intermediated trading platform, bringing the world’s largest prediction market under the umbrella of federal oversight. The designation allows Polymarket to function subject to the same strict requirements applicable to traditional U.S. exchanges.
Bridging the Gap to Traditional Finance
The amended order fundamentally alters how Polymarket can interact with the American financial system. Under the new designation, the platform is authorized to introduce “intermediated access.”
This mechanism allows the company to onboard brokerages and customers directly, rather than relying solely on the peer-to-peer blockchain structures that characterized its earlier operations.
Users will soon be able to trade on the platform through Futures Commission Merchants (FCMs). This integrates prediction market contracts with standard market infrastructure, including established custody solutions and reporting channels.
By adopting this model, Polymarket moves away from the gray market and into the regulated financial pipeline, allowing it to service U.S. customers through compliant venues.
Surveillance and Compliance Upgrades
To secure this approval, Polymarket underwent significant operational overhauls. The company developed enhanced surveillance systems and market supervision policies designed to detect manipulation and ensure fair play.
The infrastructure upgrades also include new clearing procedures and Part-16 regulatory reporting capabilities, which mandate detailed data submission to federal regulators.
The platform remains subject to all provisions of the Commodity Exchange Act. Before the official launch of these new services, Polymarket will implement additional rule sets and processes specific to intermediated trading.
Shayne Coplan, the company’s Founder and CEO, stated that this shift reflects the maturity and transparency demanded by the U.S. framework. He emphasized that the approval validates the platform’s role in providing accountability and clarity in uncertain markets.
Recommended