Polymarket has claimed it has been given the go-ahead by the Commodity Futures Trading Commission (CFTC) to launch event contracts in all 50 US states.
The prediction market is set to return to the US following a January 2022 settlement with the CFTC which involved Polymarket ceasing operations in the country.
Now, the CFTC has announced its staff have taken a “no-action” stance on designated contract market (DCM) QCX and designated clearing organisation (DCO) QC Clearing, collectively referred to as QCEX.
Polymarket acquired QCX in July for $112m, while the combined entity QCEX was ratified by the CFTC on 9 July for its Designated Contract Markets (DCM) licence.
Polymarket explained that the acquisition would allow it to launch in the US “in the near future, within a fully regulated, US-compliant framework”.
That has since been confirmed by the federal agency itself, which outlined the latest development in a statement released yesterday, 3 September.
The update, issued in response to QCEX’s own request for a no-action verdict, read: “The divisions will not recommend the CFTC initiate an enforcement action against either entity or their participants for failure to comply with certain swap-related record-keeping requirements and for failure to report to swap data repositories data associated with binary option transactions and variable payout contract transactions executed on or subject to the rules of QCX LLC and cleared through QC Clearing LLC, subject to the terms of the no-action letter.”
A letter issued the day prior by the CFTC made clear the no-action stance is one held by the agency’s Division of Market Oversight and the Division of Clearing and Risk only, with final CFTC approval still legally required.
“This letter does not state any legal conclusion regarding the characteristics or legality of QCEX contracts or the conduct of any person covered by the no-action position,” wrote the derivatives market regulator.
“This letter and the no-action position taken herein are not binding on the Commission.”
Despite that, Polymarket CEO Shayne Coplan responded to the update as one that grants the company approval to launch its prediction markets nationwide.
He wrote on X: “Polymarket has been given the green light to go live in the USA by the CFTC. Credit to the Commission and staff for their impressive work. This process has been accomplished in record timing. Stay tuned.”
That sentiment was echoed by Polymarket’s official sports account on X, which added: “BREAKING: Legal sports betting on the world’s largest prediction market is coming to all 50 states.”
Alongside July’s acquisition of QCX, Polymarket was named as the official prediction partner for X in June.
In August, the company announced Donald Trump Jr’s role as a strategic adviser after the son of US President Donald Trump invested in Polymarket via VC firm 1789 Capital.
Trump Jr is also a special adviser to Kalshi, which Coplan slammed as a Polymarket “copycat” in the days after the QCEX deal was announced.
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CEO Shayne Coplan interprets federal agency staff’s “no-action” stance as approval to launch in the US event contracts, though is warned final approval is legally still required
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