Polymarket, the world’s largest cryptocurrency-based prediction market, today announced that the U.S. Commodity Futures Trading Commission (CFTC) has issued an amended designation order.
This approval allows Polymarket to operate its brokerage trading platform under full federal regulations for US exchanges.
The move will allow the market to directly onboard brokers and customers. Users can now trade through futures commission merchants (FCMs) and access traditional custody, reporting, and market infrastructure.
“People trust Polymarket because we provide clarity where there is confusion,” said Shayne Coplan, Founder and CEO of Polymarket. “This approval allows us to operate with the maturity and transparency required by the U.S. regulatory framework. We appreciate the constructive engagement with the CFTC and look forward to leading as a regulated exchange.”
Polymarket has upgraded its system to accommodate new orders. It now has enhanced oversight, market supervision policies, clearing procedures, and Part 16 regulatory reporting.
Additional rules and processes regarding brokered transactions will be implemented prior to the official launch. Polymarket remains subject to Commodity Exchange Act and CFTC regulations, including self-regulatory obligations.
Polymarket was banned in 2022 for operating an unregistered derivatives exchange, but returned to the US with the acquisition of QCX, a regulated contract market and clearinghouse.
Polymarket now accepts Bitcoin
Earlier this year, the platform also announced support for Bitcoin direct deposits. Users can now fund their accounts using BTC alongside stablecoins such as USDC, USDT, and other cryptocurrencies.
In other news, Intercontinental Exchange (ICE), owner of the New York Stock Exchange, is considering a $2 billion investment in Polymarket. The deal could value the platform between $8 billion and $10 billion, according to the Wall Street Journal.
In October, the company was reported to be considering a funding round at a valuation of $12 billion to $15 billion.
Shane Coplan, 27, became the youngest self-made millionaire with this investment. Just a few years ago, he was a New York University dropout who started a company out of his bathroom.
The platform also attracted investors such as Donald Trump Jr.-backed 1789 Capital, which acquired derivatives exchange QCEX for $112 million and obtained a CFTC license in the process.
One of its competitors, Karsi, another major prediction marketplace that accepts Bitcoin, recently raised $300 million at a $5 billion valuation, plans to expand access to more than 140 countries, and annual trading volume is soaring toward $50 billion.
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