Decentralized prediction market platform Polymarket has announced a pivotal achievement, securing an “Amended Order of Designation” from the U.S. Commodity Futures Trading Commission (CFTC). This landmark approval clears the path for Polymarket to re-enter the U.S. market as a “fully regulated” platform, marking a significant shift for the burgeoning prediction market industry.
The decision, approved on Monday and publicly disclosed on Tuesday, empowers Polymarket to operate as a federally regulated U.S. exchange, offering an “intermediated trading platform” and “intermediated services.” This means that U.S. participants will soon be able to engage in Polymarket’s diverse range of market prediction activities through established financial channels, including Futures Commission Merchants (FCMs) and traditional securities brokerage firms.
This CFTC designation is transformative, formally bringing Polymarket under the comprehensive regulatory framework governing U.S. exchanges. Consequently, Polymarket will adhere to a stringent set of standards and obligations, encompassing enhanced monitoring, robust market surveillance protocols, rigorous clearing procedures, and detailed reporting requirements for market trading data and activities, as mandated by Part 16 of the U.S. Commodity Exchange Act.
The approval represents a monumental leap for Polymarket, transitioning it from a decentralized application operating in a regulatory grey area to a fully compliant, federally regulated provider of financial products within the U.S. financial landscape.
CEO: Prediction Markets Evolve into “Mature Financial Products”
Shayne Coplan, founder and CEO of Polymarket, emphasized the significance of this milestone in a statement, noting, “People trust Polymarket because we provide clarity amidst confusion.”
Coplan views the CFTC’s decision not merely as an endorsement of Polymarket’s platform but as a broader acknowledgment from regulatory bodies regarding the increasing acceptance of prediction markets as legitimate and “mature financial products.”
This regulatory breakthrough follows Polymarket’s temporary suspension of services to U.S. citizens in 2022, a measure taken in response to evolving U.S. regulatory requirements. Just last month, the company signaled its intention to fully reopen to the U.S. market by November of this year, having already launched a BETA platform for U.S. users.
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