US Authorities End Polymarket Probe Amid Trump Policy Shift

US authorities have reportedly concluded their investigations into Polymarket, a decentralized online prediction market. The Department of Justice and the Commodity Futures Trading Commission (CFTC) decided to end their probes, which had intensified after the 2024 US elections. The investigations were sparked by concerns that the platform allowed US-based users to place bets on political outcomes, which attracted the attention of regulators.

As part of the investigations, the FBI raided the home of Polymarket CEO Shayne Coplan in November 2024, seizing electronic devices as part of its inquiry. While Coplan and Polymarket have not commented on the report, a source familiar with the matter confirmed that the investigations have concluded.

The timing of the closure is notable as it coincides with a shift in US enforcement policy toward digital assets under the Trump administration. While the initial investigations were conducted during Joe Biden’s presidency, President Donald Trump’s administration has taken a different approach. Under Trump, several enforcement actions against crypto firms have been dropped, particularly those involving executives who supported his 2024 campaign.

Meanwhile, the US House of Representatives is preparing to vote on three major crypto-related bills before its August recess. Trump has been particularly focused on fast-tracking the GENIUS Act, which is a bill intended to regulate payment stablecoins. The outcome of these legislative efforts could greatly change the US regulatory landscape for crypto, particularly in light of the recent shift away from aggressive enforcement.

This development marks a significant shift in the regulatory approach toward decentralized finance platforms. The closure of the investigations into Polymarket suggests a more lenient stance from US authorities, which could have broader implications for the crypto industry. The outcome of the legislative efforts and the ongoing trial of Tornado Cash co-founder Roman Storm will further shape the regulatory environment for digital assets.