Polymarket Returns To US Regulated Trading After Three Years, Following CFTC Green Light

• Polymarket received an updated order from the CFTC authorizing the company to operate a fully regulated, intermediated platform in the U.S.
• The platform blocked U.S. users from its platform in 2022 while it addressed regulatory compliance.
• This was after the CFTC issued a cease-and-desist order and $1.4 million civil penalty.

Polymarket announced on Tuesday that the U.S. Commodity Futures Trading Commission (CFTC) has approved an updated order that allows the company to operate a fully regulated, intermediated trading platform in the U.S. 

This means Polymarket can now function under the same rules that apply to federally regulated U.S. exchanges. On Stocktwits, retail sentiment around Polymarket, which is not a publicly traded company, was in ‘neutral’ territory with chatter at ‘high’ levels.

"This approval allows us to operate in a way that reflects the maturity and transparency that the U.S. regulatory framework demands.”

– Shayne Coplan, Founder and CEO, Polymarket 

Intermediated Access Now Permitted

With this approval, Polymarket will be able to work directly with brokerages and customers and offer trading through U.S. venues. The company is now allowed to provide “intermediated access,” meaning users can trade through futures commission merchants (FCMs) and use the same custody, reporting, and market infrastructure that traditional financial firms rely on.

“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 Shayne Coplan, Founder and CEO of Polymarket.

To comply with the amended order, Polymarket said it has built improved market surveillance tools, supervision policies, clearing procedures, and regulatory reporting systems. The company plans to roll out additional rules and processes that apply to intermediated trading before the platform officially launches.

Return To Regulated Markets After Three Years

Polymarket ran into trouble with the CFTC after operating an unregistered market for event-based binary options starting around mid-2020. The regulator determined that Polymarket was offering swaps without the proper registration as a designated contract market or swap execution facility under the Commodity Exchange Act. 

The CFTC issued a cease-and-desist order and imposed a $1.4 million civil penalty, requiring the company to wind down all non-compliant markets and halt illegal trading activities. As a result, Polymarket blocked U.S. users from its platform in 2022 while it addressed regulatory compliance.

Read also: Bitcoin Reclaims $87,000 With XRP, Solana And Ethereum Leading Gains – Trend Reversal May Be Short-Term, Says Analyst

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