The Commodity Futures Trading Commission (CFTC) granted regulatory approval for prediction market platform Polymarket to resume US operations through a no-action letter issued to QCX LLC on Sept. 3.

The CFTC’s Division of Market Oversight and the Division of Clearing and Risk announced that they will not pursue enforcement action against QCX LLC or QC Clearing LLC regarding swap data reporting and record-keeping requirements for event contracts.

Regulatory greenlight

The letter applies only to narrow circumstances and mirrors similar regulatory relief granted to other designated contract markets.

The approval enables Polymarket to operate event contracts while maintaining compliance with federal derivatives regulations through its QCX partnership structure.

Polymarket CEO Shayne Coplan celebrated the development on social media, crediting the Commission for “impressive work” and noting the process was completed in “record timing.”

Coplan indicated US operations would launch soon, posting “stay tuned” to his announcement.

The regulatory green light marks a return for Polymarket, which ceased US operations in 2022 following CFTC settlement over unregistered derivatives trading.

The platform paid $1.4 million to resolve those charges and blocked American users from accessing its prediction markets.

Polymarket accelerated its efforts for a US return in July, when the US Department of Justice and the CFTC concluded the probe into the prediction market. Less than a week later, Polymarket acquired QCX in a $112 million deal.

On Aug. 26, Donald Trump Jr. joined Polymarket’s advisory board amid an Go to Source to See Full Article
Author: Gino Matos