Polymarket, a cryptocurrency-based prediction market platform, has officially launched its U.S.-focused application (app) after receiving approval from the Commodity Futures Trading Commission (CFTC). The launch marks the end of nearly four years of restrictions that prevented American users from participating in its blockchain-powered prediction markets. The app is initially available in the App Store under the sports category and is gradually opening access to users from a previously established waitlist.
The platform's return to the U.S. market follows a settlement with the CFTC in January 2022, when it was barred for offering unregistered derivative contracts. To resume operations legally in the U.S., Polymarket acquired QCEX, a regulated contract market and clearinghouse, for $112 million in July. In September, the company received a no-action letter from the CFTC. On November 25, Polymarket secured an Amended Order of Designation from the CFTC, enabling it to operate as an intermediated trading platform under federal rules for U.S. exchanges.
To comply with the CFTC's requirements, Polymarket upgraded its systems to include enhanced market surveillance, supervision policies, clearing procedures, and regulatory reporting. The platform remains subject to the Commodity Exchange Act and other CFTC regulations, including self-regulatory obligations.
Founded in 2020 by early Ethereum investor Shayne Coplan, Polymarket plans to initially introduce sports markets before expanding its U.S. offerings. The company intends to eventually open markets on "everything".
Polymarket's return to the U.S. comes amid heightened interest in prediction markets. Wall Street professionals have expressed strong interest in crypto prediction markets like Polymarket for forecasting events, signaling potential institutional adoption of the platform's services. Polymarket is now seeking a valuation of up to $15 billion. Earlier this year, it secured $2 billion in strategic funding from Intercontinental Exchange, the parent company of the New York Stock Exchange, at a $9 billion valuation.
Polymarket has also recently partnered with PrizePicks, a fantasy sports platform, and became the designated clearinghouse for DraftKings' planned prediction product.
The company's comeback follows a shift in the CFTC's approach, after its failed attempt to block Kalshi from offering political markets in 2024. Polymarket's primary competitor, Kalshi, has been offering sports event contracts in all 50 states, arguing there is a technical difference between trading on prediction markets and betting on sports.
While Polymarket is reentering the United States at an active moment for prediction markets, the regulatory picture remains uneven. Coplan has previously been questioned by the U.S. Department of Justice about Polymarket's 2024 election markets, underscoring the scrutiny prediction apps continue to face even as regulators rework their approach.
