TLDR
- The prediction market platform is negotiating with federal regulators to overturn restrictions blocking American users since 2022
- A $1.4 million fine was paid in 2022, resulting in the platform moving operations outside U.S. jurisdiction
- QCX LLC was purchased for approximately $112 million in 2025 to establish a compliant U.S. presence
- Intercontinental Exchange committed up to $2 billion, placing the company’s valuation near $8 billion
- Federal clearance would create direct rivalry with existing U.S. competitor Kalshi
The prediction market platform Polymarket is currently engaged in negotiations with the Commodity Futures Trading Commission to eliminate restrictions that have prevented American traders from accessing its primary marketplace since 2022.
According to Bloomberg’s reporting, which cited sources with direct knowledge of the situation, the company aims to restore direct access for U.S. users to its offshore, blockchain-powered trading platform.
The restrictions originated from regulatory enforcement in 2022. The CFTC brought charges against the company, operating at the time as Blockratize Inc., for providing unregistered event-based contracts to American customers without securing necessary regulatory permissions. The matter concluded with a $1.4 million civil monetary penalty and a commitment to prohibit U.S. participants from the service.
Prediction markets enable participants to buy and sell contracts linked to upcoming events including political races, sporting competitions, and financial indicators. These platforms have gained significant traction while simultaneously facing examination from state authorities who contend they function as unregulated betting operations.
Following the 2022 resolution, the company continued pursuing American market access. In July 2025, it purchased QCX LLC, a federally registered derivatives exchange and clearinghouse holding CFTC credentials, in a transaction valued at approximately $112 million.
The acquired entity was renamed Polymarket US, providing American participants with a regulatory-compliant pathway through authorized brokerage firms. The CFTC modified its previous order in late 2025 to permit restricted access for domestic users.
Domestic Operations Lag Behind International Platform
The company introduced a U.S.-focused version concentrating on athletic competitions and specific events. However, activity levels on this domestic platform have fallen significantly short of the volume and depth found on the primary offshore exchange.
This disparity appears to be motivating the current effort to fully merge the international exchange with the U.S.-licensed QCX infrastructure, potentially operating under unified regulatory oversight.
The platform has secured substantial institutional capital. Intercontinental Exchange, which owns the New York Stock Exchange, committed a strategic investment reaching $2 billion in the company. This investment establishes a corporate valuation approaching $8 billion. Additionally, the platform maintains a data-sharing arrangement with Dow Jones.
Securing formal authorization would necessitate a commissioner vote at the CFTC. The agency presently operates with just one active commissioner, Chairman Michael Selig, while multiple positions remain unfilled. This situation could expedite the approval timeline, although certain legislators have expressed unease about significant decisions proceeding with such limited commissioner representation.
Selig has previously maintained that state governments lack authority over prediction markets, positioning regulatory oversight squarely with the CFTC.
Recent Insider Trading Allegations Create Additional Complications
The regulatory discussions unfold against the backdrop of a recent insider trading incident on the platform. A military service member faces accusations of utilizing VPN technology to circumvent geographic restrictions and generate more than $400,000 through trades informed by confidential government intelligence.
The CFTC has additionally initiated legal proceedings against New York and Illinois regarding state-level regulatory efforts on prediction markets, defending federal jurisdictional authority.
Should authorization be granted, a fully functioning U.S.-based exchange would position the platform as a direct challenger to Kalshi, which currently functions as the only CFTC-regulated event contract marketplace serving American customers.
Both the company and the CFTC declined to provide statements regarding the ongoing discussions.
