Polymarket Says CFTC Approval Allows It Intermediated Access to US Market
Prediction market Polymarket said Tuesday (Nov. 25) that it received an approval from the Commodity Futures Trading Commission (CFTC) that positions the company to return to the United States under a fully regulated exchange structure.
The CFTC issued an Amended Order of Designation that permits Polymarket to operate an intermediated trading platform subject to the requirements applicable to federally regulated U.S. exchanges, the company said in a press release.
This approval will enable Polymarket to onboard brokerages and customers directly and facilitate trading on U.S. venues, and to introduce intermediated access that allows users to trade through Futures Commission Merchants (FCMs), according to the release.
The company remains subject to the Commodity Exchange Act and applicable CFTC regulations governing Designated Contract Markets, per the release.
“This approval allows us to operate in a way that reflects the maturity and transparency that the U.S. regulatory framework demands,” Polymarket Founder and CEO Shayne Coplan said in the release. “We’re grateful for the constructive engagement with the CFTC and look forward to continuing to demonstrate leadership as a regulated U.S. exchange.”
PYMNTS reported in September that when the CFTC issued a no-action letter regarding event contracts, in response to a request from two businesses owned by Polymarket, it in essence gave Polymarket a regulatory green light to re-enter the American market.
The no-action letter allows event contracts without triggering standard swap data reporting and recordkeeping mandates.
Polymarket’s return to the American marks a turnaround from 2022, when the company was subjected to a CFTC settlement and $1.4 million fine for operating as an unregistered derivatives facility.
In October, Intercontinental Exchange (ICE), the owner and operator of the New York Stock Exchange (NYSE), announced a strategic $2 billion investment in Polymarket. The deals values Polymarket at about $8 billion pre-investment and grants ICE not only a financial stake but also a central role as the global distributor of Polymarket’s event-driven data.
“Realizing the potential of recent technologies, such as tokenization, will require collaboration between established market leaders and next-generation innovators. We couldn’t be more excited to build together,” Coplan said at the time in a press release.
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