US Drops Polymarket Probe Amid Digital Asset Regulation Push

The US Justice Department and Commodity Futures Trading Commission have concluded their investigations into the crypto-betting platform Polymarket. This development comes after a thorough examination into whether the New York-based platform continued to accept wagers from US traders who used virtual private networks or other methods to circumvent the company's controls. This scrutiny followed a settlement reached in January 2022 with the CFTC.

The investigations gained momentum after the November elections, culminating in a pre-dawn raid by FBI agents at the Soho penthouse of Polymarket CEO Shayne Coplan. The 27-year-old executive subsequently expressed his disapproval of the action on social media, characterizing it as a "last-ditch effort" to target companies perceived to be associated with President Joe Biden’s political opponents.

The decision to drop the investigations coincides with Congress's preparations to vote on the first significant legislation aimed at regulating digital assets. This legislation is anticipated to be sent to the president's desk for signature this week, marking a pivotal moment in the evolving landscape of digital asset regulation. As the regulatory environment advances, industry leaders are increasingly focused on opportunities for enhanced oversight, potentially paving the way for Polymarket's reentry into the US market.