Polymarket Set for US Relaunch After Regulatory Clearance

Prediction platform Polymarket is preparing to reopen in the USA nearly four years after regulators forced it to suspend its operations in the country. Documents filed in September and statements from company officials suggest that the relaunch could be imminent. This move will likely serve as a test for the broader prediction sector as it remains mired in controversy and legal challenges.

The Exchange Had a Turbulent History

Polymarket’s upcoming reopening marks a turning point for prediction markets, which allow participants to buy and sell shares tied to the outcomes of real-world events. While such platforms remain controversial, proponents argue that such companies provide efficient and accurate forecasting tools. Meanwhile, opponents claim that prediction markets are just another way of online gambling. 

Despite its absence from the US, Polymarket remains one of the most recognizable names in the prediction market space. Founded in 2020, the company gained recognition for its diverse contracts, from political races to pop-culture milestones. The 2024 US presidential elections skyrocketed Polymarket’s popularity, even though the Commodity Futures Trading Commission (CFTC) barred US citizens from participating after its 2022 crackdown.

Despite setbacks, Polymarket set off to restructure its offerings. In August, the exchange bought out QCX LLC for $112 million. Notably, the firm holds a Designated Contract Market license, allowing Polymarket to self-certify new contracts for US users. The CFTC issued a no-action letter in September addressing reporting and record-keeping violations, thus officially clearing the way for a relaunch. QCX now operates as Polymarket US.

A US Relaunch Presents New Opportunities

Polymarket CEO Shayne Coplan recently noted that the platform had the “green light to go live in the USA.” He also urged regulators to promote blockchain-fueled finance rather than stifle it, speaking at a Washington panel co-hosted by the CFTC and Securities and Exchange Commission earlier this week. 

Credit to the Commission and Staff for their impressive work. This process has been accomplished in record timing.

Shayne Coplan

The upcoming relaunch aligns with a surge in investor confidence. Recent reports indicate that Polymarket is pursuing a new funding round valuing the company at $9 billion. 1789 Capital, the venture firm co-founded by Donald Trump Jr., remains a key backer, having invested tens of millions of dollars. However, Trump Jr.’s role as advisor to rival platform Kalshi has stirred debates over potential conflicts of interest.

Polymarket’s return coincides with rising scrutiny against prediction platforms. Kalshi remains embroiled in legal challenges as tribes allege the platform’s sports contracts infringe on their sovereignty. Such developments could present an opportunity for Polymarket to prove its ability to operate under US regulations and gain legitimacy as a forecasting tool across media, finance, and even policymaking.