CFTC approves license, "prediction market leader" Polymarket obtains legal status in the United States.

The U.S. Commodity Futures Trading Commission (CFTC) has officially granted regulatory approval to the prediction market platform Polymarket, authorizing it to operate in the U.S. as a regulated American trading platform. This move marks the platform’s successful crossing of regulatory hurdles, securing its “legal status” for compliant operations within the United States. According to a revised order issued by the CFTC on Tuesday, Polymarket is permitted to run an intermediary trading platform subject to comprehensive federal regulatory requirements. Media reports indicate that this will allow the market to directly bring in brokers and customers. Users can now trade through Futures Commission Merchants (FCMs) and access traditional custody, reporting, and market infrastructure. Polymarket founder and CEO Shayne Coplan stated that this approval enables the company to conduct operations with the maturity and transparency required by the U.S. regulatory framework. He emphasized Polymarket’s commitment to providing clarity to eliminate confusion and expressed gratitude for constructive engagement with the CFTC, looking forward to leading market development as a regulated exchange. To comply with the new regulations, Polymarket has upgraded its internal systems per the directive, enhancing monitoring, market supervision policies, clearing procedures, and Part 16 regulatory reporting capabilities. This means Polymarket will remain subject to the Commodity Exchange Act and CFTC regulations, including self-regulatory obligations. Previously, the platform was banned from U.S. operations in 2022 for operating as an unregistered derivatives exchange, but now has officially returned to the U.S. market through a compliant route. **Multi-Billion Dollar Valuation and Institutional Entry** With regulatory barriers removed, capital market interest in Polymarket has surged significantly. According to The Wall Street Journal, Intercontinental Exchange, the owner of the New York Stock Exchange, is considering a $2 billion investment in the platform. The deal could push Polymarket’s valuation into the $8 billion to $10 billion range. Earlier reports from October indicated the company was seeking financing at a valuation of $12 billion to $15 billion. Current investors include institutions like 1789 Capital, supported by Donald Trump Jr. As the valuation skyrockets, Shayne Coplan, now 27, has become one of the youngest self-made billionaires. Just a few years ago, the NYU dropout founded the company in a bathroom. **Compliance Architecture Upgrades and Asset Support** Before officially restarting U.S. operations, Polymarket will implement additional rules and processes for intermediary trading. To meet regulatory requirements and obtain its license, Polymarket previously acquired the regulated contract market and clearing house QCX for $112 million, laying the foundation for its CFTC approval. On the asset side, the platform recently announced direct Bitcoin deposit support. Users can now fund their accounts with BTC in addition to stablecoins like USDC and USDT. This functionality further expands its funding channels and user base as a prediction market. **Regulatory Leadership Changes and Competitive Landscape** The approval comes as CFTC leadership undergoes changes. The notice was issued during Acting Chair Caroline Pham’s term, while the U.S. Senate Agriculture Committee has voted to advance SEC official Michael Selig's nomination as the next CFTC Chair. However, even if Michael Selig is confirmed, four CFTC commissioner seats remain vacant, and as of now, President Trump has not announced any potential replacements. In market competition, Polymarket’s main competitor Kalshi recently raised $300 million at a $5 billion valuation. Kalshi is also a major Bitcoin-accepting prediction market, planning to expand into more than 140 countries, with its annualized trading volume nearing $50 billion. This indicates intensifying competition among top platforms in the compliant prediction market sector. Risk Warnings and Disclaimer Markets are risky and investments should be made prudently. This article does not constitute personal investment advice, nor does it take into account individual users’ specific investment objectives, financial situations, or needs. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific situations. All investment decisions made on this basis are at the user’s own risk.