Polymarket Cleared by CFTC for U.S. Return

• The Commodity Futures Trading Commission took a no-action position on QCX LLC for event contracts
• Polymarket acquired the CFTC-licensed derivatives-exchange QCX and QC Clearing LLC in July
• The no-action position will now allow Polymarket to re-enter the U.S. market and offer event contracts to customers

Polymarket will soon be coming back to the U.S.

The Commodity Futures Trading Commission (CFTC) today issued a no-action position on QCX and QC Clearing LLC for prediction market offerings. Polymarket acquired the CFTC-licensed derivatives-exchange QCX and QC Clearing LLC in July.

This no-action by the CFTC seemingly allows Polymarket to reenter the legal U.S. prediction market.

Polymarket Back in the U.S.

Shayne Coplan, Polymarket CEO, today thanked the CFTC for its quick decision on social media.

The CFTC announced today it will take a no-action position regarding “swap data reporting and recordkeeping regulations for event contracts in response to a request from QCX LLC, a designated contract market, and QC Clearing LLC, a derivatives clearing organization.”

“The divisions will not recommend the CFTC initiate an enforcement action against either entity or their participants for failure to comply with certain swap-related recordkeeping requirements and for failure to report to swap data repositories data associated with binary option transactions and variable payout contract transactions executed on or subject to the rules of QCX LLC and cleared through QC Clearing LLC, subject to the terms of the no-action letter,” the CFTC noted.

Long story short, this clears the way for Polymarket to return to the U.S. and offer event contracts, which will most likely include sports event contracts, to customers.

No start date has been yet announced by Polymarket.

U.S. Customers Banned From Polymarket Since 2022

Polymarket has not been available to U.S. customers since 2022, when the CFTC fined the predictions market company $1.4 million for operating an illegal, unregistered or non-designated facility for event-based binary options online trading contracts, or “event markets.”

In addition to the fine, the CFTC issued a cease-and-desist to Polymarket for violating the Commodity Exchange Act and CFTC regulations.

The CFTC declared Polymarket had been operating an illegal, unregistered facility offering event market contracts since 2020.

Polymarket recently also announced a deal with social media platform X to become the company’s official prediction market partner.

As part of the partnership, Polymarket predictions will be combined with X data to provide live insights, incorporating real-time annotations to explain market moves directly from Grok and relevant X posts.