Polymarket Wins CFTC Approval to Reenter The US as a Regulated Exchange
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Polymarket, the world’s largest prediction market, announced yesterday that it has been granted an Amended Order of Designation by the US commodities regulator, the Commodity Futures Trading Commission (CFTC).
The move will allow the predictions platform to operate a fully regulated, intermediated trading venue in the country. Furthemore, the approval means that US users will be able to access Polymarket contracts through futures commission merchants and traditional brokerage channels.
The move represents a major milestone for Polymarket, which is now permitted to operate an intermediated trading platform subject to the requirements applicable to federally regulated US exchanges.
In its announcement, published on November 25, Polymarket says that it can onboard brokerages and customers directly, and facilitate trading on US venues, as it is now also permitted to introduce intermediated access. This will allow users to trade through FCMs and leverage traditional market infrastructure, custody, and reporting channels.
The platform’s CEO and founder, Shayne Coplan, said that people rely on Polymarket because it provides clarity where there is confusion, and accountability where there is ambiguity.
“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,” Coplan added.
Polymarket Is Returning To The US After Three Years
The new designation will place Polymarket under the full obligations applied to Designated Contract Markets, which include market supervision protocol, surveillance requirements, clearing rules, as well as Part 16 reporting standards.
The company also said that it will implement additional rules and processes connected to intermediated trading before opening US access.
It is also worth noting that the approval came after Polymarket’s plan to relaunch in the US after having to block US users three years ago, in 2022. This was the result of increased regulatory scrutiny. However, Polymarket said in October that it expected to reopen domestically in November, and the new designation will allow it to put this plan into action.
Its return to the country will bring prediction market trading back ot the US through regulated intermediaries, reshaping the way retail and institutional traders access event-based contracts.
Earlier this month, the firm also started allowing limited groups of US users to place real-money trades as it tested its US exchange ahead of the full reopening, which is now pushed slightly, and is expected in December.
