CMC News

#Polymarket Gets U.S. Green Light After #CFTC Relief

The U.S. Commodity Futures Trading Commission issued a no-action letter on Wednesday for QCX LLC and QC Clearing LLC, entities tied to prediction platform Polymarket. This regulatory relief enables the company to offer event contracts without adhering to standard reporting requirements under U.S. financial regulations.

CEO Shayne Coplan announced on X that the CFTC action gives Polymarket "the green light to go live in the USA." The process was completed in record time, according to Coplan's statement.

Polymarket acquired QCEX in July for $112 million, which included the CFTC-licensed derivatives exchange and clearinghouse. This acquisition provided the company with a stronger foundation for U.S. market operations.

The no-action letter provides temporary enforcement relief while not exempting the companies from regulatory compliance entirely. Event contracts must remain fully collateralized, with no third-party clearing members involved in the process.

This development represents a shift in U.S. financial regulators' approach to #crypto enforcement following the Trump administration's takeover in January. The Securities and Exchange Commission has dropped several investigations and lawsuits against digital asset companies over the past eight months.

Donald Trump Jr. joined Polymarket's advisory board in August, strengthening the platform's political connections. Brian Quintenz, #Trump's pick to chair the CFTC, awaits Senate consideration as the regulatory landscape continues evolving.

Polymarket faced previous enforcement action in 2022 when the CFTC ordered the company to pay $1.4 million for operating an "illegal unregistered facility." The platform correctly predicted President Trump's victory in the 2024 election, accumulating nearly $3.7 billion in trading volume on that market alone.