CFTC Approves Polymarket for Intermediated Access to US Market

Core Insights - Polymarket has received approval from the Commodity Futures Trading Commission (CFTC) to operate under a fully regulated exchange structure in the U.S. [1][2] - The approval allows Polymarket to onboard brokerages and customers directly, facilitating trading on U.S. venues and introducing intermediated access through Futures Commission Merchants (FCMs) [3] - This marks a significant turnaround for Polymarket, which faced a CFTC settlement and a $1.4 million fine in 2022 for operating as an unregistered derivatives facility [5] Regulatory Developments - The CFTC issued an Amended Order of Designation, permitting Polymarket to operate an intermediated trading platform subject to federal regulations [2][3] - A no-action letter from the CFTC allows event contracts without triggering standard swap data reporting and recordkeeping mandates, effectively giving Polymarket a regulatory green light [4][5] Financial Backing - Intercontinental Exchange (ICE) announced a strategic $2 billion investment in Polymarket, valuing the company at approximately $8 billion pre-investment [6] - This investment grants ICE a financial stake and a central role as the global distributor of Polymarket's event-driven data [6] Leadership Perspective - Polymarket's CEO, Shayne Coplan, expressed gratitude for the constructive engagement with the CFTC and emphasized the company's commitment to operating within the U.S. regulatory framework [4][7]