TLDR
- Polymarket has received CFTC approval to operate an intermediated trading platform in the US.
- The approval allows Polymarket to onboard brokerages and facilitate trading on US platforms.
- Polymarket will operate under the full set of requirements applicable to federally regulated US exchanges.
- The approval follows a closed investigation by the CFTC and the US Department of Justice into Polymarket’s activities.
- The CFTC’s decision comes as the US Senate prepares to vote on the nomination of a new CFTC chair.
- Polymarket’s CEO, Shayne Coplan, emphasised the platform’s commitment to US regulatory transparency and maturity.
Polymarket has received regulatory approval from the US Commodity Futures Trading Commission (CFTC) to operate an intermediated trading platform. The CFTC issued an Amended Order of Designation that allows Polymarket to comply with federal exchange regulations. This approval enables the platform to onboard brokerages and customers and facilitate trading in US venues.
Polymarket’s Regulatory Approval
The CFTC’s approval confirms Polymarket’s ability to operate in accordance with the strict guidelines for federally regulated exchanges in the United States. In a statement, Polymarket CEO Shayne Coplan emphasized, “This approval allows us to operate in a way that reflects the maturity and transparency that the US regulatory framework demands.” The company expects to onboard more brokerages and customers, enhancing its trading capabilities on US platforms.
The approval follows an investigation by the CFTC and the US Department of Justice, which looked into whether Polymarket accepted trades from US-based users. The investigation ended five months ago, with no formal charges against the platform. The FBI had previously raided Coplan’s home and seized his electronic devices as part of the probe.
Oversight and Future Developments
Under the new CFTC designation, Polymarket will continue to operate under the regulator’s oversight. The market structure bill currently before Congress could further expand the CFTC’s authority, potentially affecting how Polymarket operates. As the bill moves forward, its implications for the digital asset market could evolve, affecting platforms like Polymarket.
The CFTC’s decision comes at a time when key personnel changes are underway within the regulator. The US Senate is expected to vote on Michael Selig’s nomination for the next chair of the CFTC. However, the agency still faces leadership gaps, with four commissioner positions remaining vacant.
With regulatory approval in place, Polymarket aims to solidify its position as a key player in the US market. The platform is now authorized to facilitate prediction markets with enhanced transparency and regulatory compliance. This marks a new phase in Polymarket’s operations, ensuring it aligns with US federal exchange requirements.
Despite the challenges faced during the investigation, Polymarket is moving forward, strengthening its position for future growth. The company’s recent approval sets a precedent for other platforms in the prediction market industry. Polymarket’s ability to operate under the CFTC’s oversight will be crucial for its ongoing development in the US market.
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