Regulators Give Polymarket a Green Light to Operate in U.S. Markets

The U.S. Commodity Futures Trading Commission (CFTC) has issued a no-action letter granting relief to QCX LLC and QC Clearing LLC, two entities acquired by the prediction market platform Polymarket, regarding certain regulatory requirements for event contracts. This decision, announced by the CFTC’s Division of Market Oversight and Division of Clearing and Risk, allows Polymarket to operate within the United States without facing enforcement action for non-compliance with specific swap data reporting and recordkeeping obligations. The relief is limited to narrowly defined circumstances and mirrors previous no-action positions taken for other designated contract markets and derivatives clearing organizations [1].

The no-action letter specifically permits Polymarket and its affiliated entities to conduct binary option and variable payout contract transactions without adhering to all swap-related reporting requirements. This effectively enables the platform to offer event contracts—financial instruments tied to the outcomes of real-world events—without the burden of full regulatory data submission. According to the CFTC statement, this approach ensures that neither the entities nor their participants will face enforcement for these reporting shortfalls, provided they meet the conditions outlined in the letter [2].

Polymarket announced in July its acquisition of QCX for $112 million, marking a key step in its return to the U.S. market after previously withdrawing in 2022 under regulatory pressure. The CFTC’s no-action stance follows a federal investigation being dropped earlier this summer, which allowed Polymarket to proceed with its U.S. expansion plans. The company’s CEO, Shane Coplan, praised the CFTC for its swift and efficient handling of the matter, noting that the process unfolded in “record timing” [1].

The decision reflects a broader shift in the U.S. regulatory landscape toward greater acceptance of prediction markets and crypto-based financial instruments. Polymarket has seen a resurgence in its activity, with over 11,500 new markets added in July, representing a 44% increase month-over-month. This growth comes as rival platforms like Kalshi have also gained regulatory clarity, contributing to a surge in the visibility and usage of prediction markets [2].

The CFTC’s no-action letter is not a formal exemption from existing rules but rather a temporary reprieve from enforcement action, allowing Polymarket to operate while it continues to comply with other regulatory obligations. The CFTC emphasized that the relief does not alter the applicability of event contract recordkeeping regulations but provides a more flexible framework for market participants. The regulator also noted that the relief is aligned with prior actions taken in similar cases, maintaining consistency in its enforcement approach [3].

The regulatory environment for crypto and prediction markets is evolving, with both the CFTC and the Securities and Exchange Commission (SEC) recently taking collaborative steps to clarify the status of spot crypto trading on registered platforms. These efforts aim to facilitate the growth of the crypto market in the U.S. before comprehensive legislative action is finalized by Congress [4].

Source:

[1] The Block (https://www.theblock.co/post/369377/polymarket-can-go-live-in-the-us-following-cftc-ruling-ceo-says)

[2] Coindesk (https://www.coindesk.com/policy/2025/09/03/u-s-cftc-gives-go-ahead-for-polymarket-s-new-exchange-qcx)

[3] Cointelegraph (https://cointelegraph.com/news/cftc-no-action-polymarket-letter-qcex-event-contracts)

[4] Coindesk (https://www.coindesk.com/policy/2025/09/02/u-s-sec-cftc-combine-forces-to-clear-registered-firms-trading-of-spot-crypto)