Polymarket US Launch Imminent Following CFTC Approval

• CFTC issued amended order of designation
• Order allows Polymarket to operate intermediated exchange in the US
• Approval paves way for Polymarket to reenter the US

Polymarket’s long-awaited return to the US inched closer to reality on Tuesday after the Commodities Futures Trading Commission (CFTC) issued an amended order of designation.

The order, courtesy of the regulator overseeing prediction markets, allows Polymarket to operate an intermediated trading platform pending the company’s ability to meet a broader set of mandates required to run federally regulated exchanges in this country.

With this approval, Polymarket will be able to onboard brokerages and customers directly and facilitate trading on U.S. venues. Polymarket is now permitted to introduce intermediated access, enabling users to trade through Futures Commission Merchants (FCMs) and leverage traditional market infrastructure, custody, and reporting channels,” according to a statement issued by the event contracts giant.

FCM status, which is obtained through the National Futures Association (NFA), is crucial for regulated prediction markets. That designation allows Polymarket to market derivatives regulated by the CFTC, which oversees companies like Kalshi and Polymarket.

Polymarket Return Stokes New Prediction Markets Competition

Polymarket’s return to the US comes more than three years after the event contracts purveyor was banished from this country and about a year after founder Shayne Coplan’s New York City apartment was raided by the FBI.

With Polymarket banned from this country, Kalshi has carved out enviable market share, and other operators, including Crypto.com, have made strides in the sports event contracts space. The competition is further heightened by DraftKings’ and FanDuel’s plans to launch their own prediction markets in the coming months.

Some analysts believe the domestic prediction markets industry will morph into a “big five” scenario consisting of DraftKings, FanDuel, Kalshi, Polymarket, and Robinhood Markets (NASDAQ: HOOD).

Polymarket Playing Ball on Regulatory Front

Polymarket is making it clear that it’s prioritizing compliance and robust regulatory guidelines.

As part of the amended order, Polymarket has developed enhanced surveillance systems, market supervision policies, clearing procedures, and part-16 regulatory reporting capabilities. Polymarket will implement additional rules, policies, and processes applicable to intermediated trading prior to official launch,” according to the statement.

Checking compliance and regulatory boxes could be a solid practice for Polymarket because there’s speculation the company could pursue an initial public offering (IPO) following its US relaunch.