Polymarket Cleared for U.S. Relaunch After CFTC Issues ‘No-Action’ Letter

A New Regulatory Path Forward

Polymarket’s return is being facilitated by its recent acquisition of QCX, a CFTC-licensed derivatives exchange. The “no-action” letter from the CFTC effectively allows Polymarket to operate through this new, regulated subsidiary. The letter specifies that the agency will not pursue enforcement action against the company for certain reporting and record-keeping rules that typically apply to derivatives platforms.

“Polymarket has been authorized to launch in the USA by the CFTC,” company CEO Shayne Coplan announced on the social media platform X. “Kudos to the Commission and Staff for their remarkable efforts. This achievement has been realized in record time.”

A Long and Winding Road to Relaunch

The regulatory clearance marks a significant turnaround for Polymarket. The company was forced out of the U.S. market in 2022 after the CFTC fined it $1.4 million for operating an unregistered platform. As part of that settlement, the company agreed to block all U.S. users from its site.

However, the regulatory environment has shifted in the intervening years. CFTC Acting Chairman Caroline Pham has been a vocal supporter of the industry, calling prediction markets an “important new frontier” and stating that the regulator “must break with its past hostility.”

This more favorable climate, combined with the strategic acquisition of a licensed exchange, has created a clear path for Polymarket’s return. The company also recently saw the conclusion of an FBI investigation into its past operations, which ended with no charges being filed.

A High-Profile Backer and a Political Backdrop

Polymarket’s regulatory breakthrough comes just a week after it secured a strategic investment from 1789 Capital, a venture capital firm where Donald Trump Jr. is a partner. Trump Jr. has also joined Polymarket as a strategic advisor, a move that has brought a new level of political intrigue to the company’s relaunch.

The involvement of a high-profile political figure has intensified the debate around prediction markets. Supporters, including Trump Jr., argue that these platforms are a powerful tool for surfacing truth by allowing people to put money behind their beliefs. Critics, however, contend that they are little more than digital casinos that encourage speculation on sensitive topics like elections.

While Polymarket has not yet announced an official launch date, its return to the U.S. market is expected to be imminent. The move will place it in direct competition with established players like Kalshi and a growing number of traditional gaming and finance companies that are also entering the space.