Prediction platform Polymarket has received regulatory approval from the US Commodity Futures Trading Commission (CFTC) to operate an intermediated trading platform.
In a Tuesday notice, Polymarket announced that the CFTC issued an Amended Order of Designation. This order will allow the company to operate an intermediated trading platform subject to the full set of requirements applicable to federally regulated US exchanges. According to Polymarket, this approval will enable the platform to onboard brokerages and customers directly and facilitate trading on US venues.
"This approval allows us to operate in a way that reflects the maturity and transparency that the US regulatory framework demands," said Polymarket founder and CEO Shayne Coplan.
The regulatory approval follows approximately five months after the CFTC and the US Department of Justice closed an investigation into Polymarket. The probe concerned whether the platform accepted trades from US-based users. The FBI had reportedly raided Coplan’s home as part of the investigation into the prediction platform, seizing his electronic devices.
The predictions platform will be subject to oversight and regulation from the CFTC while operating in the United States. Additionally, a market structure bill progressing through Congress could potentially expand the CFTC’s authority over digital assets.
CFTC Leadership in Flux
The CFTC notice was issued under the purview of acting chair Caroline Pham. This development occurs as the US Senate is expected to vote on the nomination of SEC official Michael Selig as the next chair of the commodities regulator. Lawmakers in the Senate Agriculture Committee have already voted along party lines to advance Selig’s nomination.
Even if Selig is confirmed, the CFTC would still have four vacant commissioner seats. As of Tuesday, US President Donald Trump had not announced any potential replacements for the regulator’s leadership positions.