Polymarket gains CFTC approval to operate regulated US prediction market
Summary
Polymarket has secured an Amended Order of Designation from the Commodity Futures Trading Commission (CFTC) that allows it to operate an intermediated contract market platform in the United States. The authorisation lets the firm onboard US customers and brokerages directly, collaborate with futures commission merchants and use infrastructure tied to US futures trading.
Polymarket had left the US in 2022 after paying a $1.4m penalty for operating without proper registration and moved operations offshore. Investigations by the CFTC and Department of Justice concluded in July; Polymarket’s July acquisition of a CFTC-regulated US derivatives exchange strengthened its case to return.
The company says it has implemented surveillance systems, market supervision rules, clearing procedures and part‑16 regulatory reporting applicable to designated contract markets, and will finalise additional rules for intermediated trading before launch. Trading activity has surged — Polymarket recorded more than $1bn in trading volume in a single week in 2025 — and the platform reported billions of dollars of predictions placed this year. In August, Donald Trump Jr became an investor and joined the advisory board. CEO Shayne Coplan framed the approval as a move towards greater maturity and transparency under US regulation.
Key Points
- Polymarket received an Amended Order of Designation from the CFTC to operate an intermediated contract market in the US.
- The approval permits direct onboarding of US customers and brokerages and collaboration with futures commission merchants.
- Polymarket exited the US in 2022 after a $1.4m penalty for unregistered operations; investigations closed in July 2025.
- An acquisition of a CFTC‑regulated US derivatives exchange helped support the firm’s re-entry application.
- The company has implemented surveillance, market supervision, clearing and part‑16 reporting processes required for designated contract markets.
- Weekly trading volume topped $1bn in 2025; the platform says billions have been wagered on predictions this year.
- Donald Trump Jr invested in August and joined Polymarket’s advisory board.
Context and relevance
This approval is a landmark for prediction markets in the US: it signals regulatory acceptance of intermediated trading models within the Commodity Exchange Act framework and sets a precedent for other players aiming to operate legally onshore. For firms in gaming, financial derivatives and regulated betting, Polymarket’s return under CFTC oversight matters because it legitimises event‑based trading on political, entertainment and current‑event outcomes and ties such activity to established futures market infrastructure.
Regulators and market participants will watch how Polymarket implements surveillance, clearing and reporting rules — and competitors (and courts) will likely test the boundaries of permitted products and state‑level responses. The news also sits alongside ongoing developments affecting similar platforms, so it has immediate industry and regulatory implications.
Why should I read this?
Short version: if you care about prediction markets, betting, or how regulators are handling new kinds of derivatives, this is big. Polymarket coming back to the US with CFTC sign‑off could reshape where and how political and event markets trade — and fast. We read it so you don’t have to.
