Polymarket Is Back: Crypto Prediction Giant Relaunches in U.S. With CFTC Green Light

Core Insights - Polymarket is set to relaunch in the U.S. after receiving regulatory clearance from the CFTC, marking its return after nearly three years of exclusion [1][4] - The CFTC issued a no-action letter that provides temporary relief from certain reporting requirements for event contracts, facilitating Polymarket's compliant operations [2][3] Regulatory Developments - The no-action letter allows QCX LLC and QC Clearing LLC, acquired by Polymarket, to operate without facing enforcement actions for specific reporting obligations, provided they adhere to outlined conditions [3] - The relief does not exempt the companies from broader regulatory compliance but removes significant barriers to launching prediction markets in the U.S. [4] Company Background - Polymarket faced regulatory challenges, including a $1.4 million fine in 2022 for operating an unregistered derivatives exchange, which led to the blocking of U.S. users [5] - Investigations by the DOJ and CFTC concluded without further enforcement actions, clearing the way for Polymarket's return [6] Acquisition Details - Polymarket acquired QCX and QC Clearing for $112 million, gaining a licensed designated contract market and a regulated clearinghouse, enabling it to operate under U.S. regulatory frameworks [6][7]