CFTC Clears Polymarket to Operate Fully Regulated Prediction Market in the U.S.

Polymarket has secured a major regulatory breakthrough after receiving an Amended Order of Designation from the U.S. Commodity Futures Trading Commission (CFTC), officially clearing the platform to operate as a fully regulated prediction-market venue in the United States. 

The approval, granted Monday and announced publicly on Tuesday, marks a turning point for the rapidly growing sector of event-based trading.

The CFTC’s designation places Polymarket within the same regulatory framework applied to federally supervised exchanges, a status that solidifies its shift from an experimental blockchain platform to a recognized participant in the U.S. derivatives ecosystem.

The move also brings the company full circle after access for U.S. users was cut off in 2022, with Polymarket now poised for a formal return under federal oversight.

Brokerage Channels and FCMs Cleared to Provide Access

Under the newly granted authority, Polymarket will be able to offer intermediated access to U.S. participants. This means traders will be able to place prediction-market bets through futures commission merchants (FCMs), brokerages, and other traditional intermediaries — a structure that brings the platform closer to mainstream financial market infrastructure.

By routing participation through supervised intermediaries, Polymarket joins a category of derivatives platforms that rely on established compliance layers to manage customer flows, perform due diligence and execute trades. This is a significant departure from the platform’s early years, when direct access and decentralized tooling defined most user interactions.

The company has framed the development as essential for expanding prediction-market participation and enhancing legitimacy among institutional partners that had previously been restrained by regulatory ambiguity.

Also read: Polymarket Returns to the US with a Quiet Relaunch and Major New Partners: Report

Regulatory Standards Now Mirror Those of Major U.S. Exchanges

The CFTC’s decision triggers a full suite of regulatory obligations for Polymarket, including enhanced surveillance tools, market-supervision standards, and the implementation of federally compliant clearing mechanisms. 

The platform is also now subject to Part 16 reporting requirements, which govern how exchanges must share trading and position data with the regulator.

Polymarket’s upgraded status brings the company into alignment with the rulebook followed by established exchanges, including requirements around market integrity, risk controls, and timely disclosure. 

For a sector often criticized for unregulated speculation, the decision marks a notable shift toward regulated prediction markets becoming a normalized financial product.

The enhanced oversight is expected to increase transparency and reduce concerns about manipulation, especially as election-related markets and geopolitical forecasts continue to gain mainstream interest.

Also read: Google Embraces Polymarket, Kalshi Predictions in Its New Finance Overhaul

CEO Says Approval Reflects Maturing Landscape

“People rely on Polymarket because we provide clarity where there is confusion,” founder and CEO Shayne Coplan said in a statement. He added that the CFTC’s decision reflects not only the platform’s compliance efforts but also a broader recognition that prediction markets have evolved into a legitimate financial instrument.

Coplan emphasized that regulated event-based markets can serve as powerful tools for information discovery, especially during periods of uncertainty.

The approval follows the company’s announcement last month that it expected to reopen to U.S. users in November, marking its first re-entry since the 2022 access restrictions.

Return to the U.S. Expected to Reshape Prediction-Market Sector

Polymarket’s reauthorization positions it at the forefront of a growing competition between traditional exchanges, crypto-native platforms, and emerging prediction-market startups all racing to capture a share of the information-market economy. 

With CFTC approval now secured, the company is likely to become one of the first fully regulated prediction-market platforms in the country.

The decision also signals a shift in the regulatory environment surrounding event-contracts, which have long existed in a gray zone between gambling and financial trading. The CFTC’s move may encourage other platforms to pursue similar oversight pathways — or prompt regulators to more clearly define the boundaries of permissible event-based trading.

For Polymarket, the amended designation represents both a regulatory milestone and a commercial opportunity as it prepares to reopen access to millions of potential U.S. participants for the first time in more than two years.