Trump Administration Drops Polymarket Probe, Eases Crypto Regulations

The U.S. Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC) have officially concluded their investigations into Polymarket, an online prediction market, with no charges filed. This development marks a significant shift in the regulatory environment for cryptocurrencies in the U.S., particularly under the Trump administration, which has been reversing several enforcement policies implemented during the Biden era.

The investigations into Polymarket began during the Biden administration, focusing on allegations that the platform allowed U.S. users to place bets despite a previous agreement to exclude them. The DOJ and CFTC were examining whether Polymarket had violated federal rules, following a $1.4 million settlement with the CFTC in 2022 for operating an unregistered event-based market. However, both agencies have now formally closed their investigations, issuing "declination notices" to Polymarket earlier this month, confirming that no further legal or regulatory action would be taken.

Polymarket's CEO, Shayne Coplan, had previously criticized the Biden administration's handling of crypto enforcement, claiming that an FBI raid on his New York City apartment in November 2024 was politically motivated. Coplan defended Polymarket as a valuable tool for public discourse, asserting that the platform had provided value to millions of people without causing harm to anyone. The raid, which involved the seizure of Coplan's electronic devices, did not result in any charges being filed against him.

The decision to drop the investigations into Polymarket is part of a broader trend under the Trump administration, which has been creating a more favorable environment for cryptocurrencies. Earlier this year, the administration reversed several laws introduced during the Biden years, including a requirement that forced banks to obtain pre-approval before engaging in crypto-related activities. This has made it easier for financial institutions to explore blockchain innovation.

Additionally, the Trump administration has been pushing for the passage of the GENIUS Act, which aims to create a regulatory framework for stablecoins. Although the bill recently stalled in the House of Representatives, the administration is confident that it will pass soon and is actively pressuring lawmakers for a vote before the August recess. The CLARITY Act, another major piece of legislation, could also reduce the scrutiny of digital assets. These efforts demonstrate a clear shift in the U.S. government's approach to cryptocurrencies, favoring innovation and industry growth over heavy-handed enforcement.

With the investigations concluded, Polymarket is poised to continue its growth trajectory in this more welcoming regulatory environment. The company is reportedly preparing for a $200 million funding round at a $1 billion valuation, highlighting the ongoing interest and investment in the prediction market platform.