US federal investigators closed parallel felony and civil probes into prediction market Polymarket, issuing letters earlier this month that ended inquiries by each the Justice Division and the Commodity Futures Buying and selling Fee (CFTC), as Bloomberg Information reported.
The platform permits merchants to wager on yes-or-no outcomes utilizing stablecoins on Polygon and has confronted scrutiny since a January 2022 CFTC settlement required it to exclude US clients.
Investigators later examined whether or not American customers continued to wager via digital non-public networks.
Polymarket processed roughly $2.6 billion in quantity throughout November’s US election season, drawing legislation‑enforcement consideration as buying and selling spiked.
Regulatory reset
Brokers escalated the matter eight days after the November vote, raiding CEO Shayne Coplan’s SoHo condominium and seizing his cellphone.
Coplan denounced the search as an overreach tied to the outgoing Biden staff’s stance on digital asset corporations.
In a July 15 submit on X, Coplan stated the platform “cooperated and engaged” with authorities and “has been cleared of any wrongdoing,” including that “justice prevailed.”
The choice to shut the probes aligns with a broader coverage shift.
Capitol Hill has labeled the present legislative push “Crypto Week,” and Congress plans a Home flooring vote that would ship the primary complete crypto invoice to President Donald Trump for signature.
In line with the report, the White Home has additionally tapped enterprise capital govt and former CFTC Commissioner Brian Quintenz to return and lead the derivatives regulator, signaling a friendlier method to oversight for prediction markets.
Path to licensed US market
With the investigations resolved, the report highlighted that Polymarket can now discover formal re-entry into the US.
Choices embody making use of to function as a delegated contract market or buying an entity that already holds a CFTC license.
The agency has lately introduced a partnership with X and xAI to ship on-platform occasion forecasts, strikes that would help growth below a compliant framework.
Polymarket initially agreed to pay $1.4 million and delist three markets to settle the 2022 CFTC motion.
Firm engineers then put in geofencing instruments, though regulators questioned whether or not US merchants have been nonetheless accessing its web site.
The closure letters point out that investigators discovered no proof of breaches of earlier obligations, clearing a major hurdle earlier than any licensing software.
For now, Polymarket’s clearance removes fast authorized threat whereas lawmakers talk about new guidelines.
