Polymarket will return to the United States market after acquiring derivatives exchange QCEX for $112 million.
The world’s largest prediction market announced its purchase of the CFTC-regulated clearinghouse on Monday, paving the way for a comeback to America following two years out.
The crypto betting site will now be considered compliant under US regulations as it owns an approved derivatives clearing organisation (DCO) and designated contract market (DCM) in the form of QCEX.
Earlier this month, the Department of Justice and Commodity Futures Trading Commission (CFTC) ended their investigations into Polymarket.
Why Was Polymarket Banned From the US?
Polymarket stopped offering services to US customers in late 2022 following a settlement with the Commodity Futures Trading Commission (CFTC) which accused the company of running an unregistered derivatives-trading platform.
The company failed to attain a license before allowing American users to bet on certain political and business outcomes. Polymarket ended up paying a fine of $1.4 million to the CFTC.
In November 2024, the FBI raided the home of CEO Shayne Coplan, seizing his phone and electronics regarding an investigation into whether Polymarket violated that settlement by allowing US-based users to its platform.
Coplan accused the Biden administration of targeting his company over its perceived political associations after Polymarket correctly predicted a high likelihood that Donald Trump would win the election, out of line with most mainstream polls.
What Is Polymarket?
Polymarket is a blockchain-based betting platform where players can stake crypto on the outcome of real-world events such as sports matches, presidential elections, scientific breakthroughs and more.
The platform automatically adjusts odds based on the market’s activity. It’s unclear how the business operates financially as Polymarket itself doesn’t make any money, with no fees on any kind of market creation or trading.
It is one of the most popular anonymous betting sites on the planet, allowing users to wager without undergoing KYC checks and ensuring privacy.
Joe Lyons is a betting industry writer for GamblingIndustryNews with years of experience on reputable gambling websites. Joe specialises in long form content in the world of sports betting and gambling. Joe is recognised as an expert in sports fields such as horse racing, soccer, NFL and NBA.
