After three years of being an outsider to its own domestic market, prediction platform company Polymarket will be returning to the U.S. market, made possible by an official CFTC approval given to the company, as per an official press release on Tuesday.
The update comes after the strategic move made by Polymarket of acquiring QCX for $112 million to secure a presence in America and a no-action letter from the CFTC in September, providing relief for certain compliance issues linked with QCX and QC Clearing.
“This approval allows us to operate in a way that reflects the maturity and transparency that the U.S. regulatory framework demands. We’re grateful for the constructive engagement with the CFTC and look forward to continuing to demonstrate leadership as a regulated U.S. exchange,” said CEO and founder Shayne Coplan.
The specific terms of the amended order means Polymarket can directly facilitate trading as a fully regulated U.S. exchange with the ability to add customers and brokerages directly.
The approval almost marks a full circle for the company, as it was the CFTC that accused Polymarket in 2022 of illegal trading activities, an allegation that came with a $1.4 million fine, which the firm paid.
Polymarket offers an events events-based betting service that allows speculators to lay odds on all kinds of significant events, such as elections, sports outcomes, weather patterns, and other notable happenings. For instance, the platform comprehensively covered the odds for the New York mayoral race.
The company is also now involved in crypto, issuing a $Poly token that went live on the BNB chain.