Polymarket announced that the U.S. Commodity Futures Trading Commission (CFTC) has issued an Amended Order of Designation, allowing the platform to operate an intermediated trading system subject to the complete regulatory framework that applies to federally regulated U.S. exchanges.
The new authorization enables Polymarket to onboard brokerages and customers directly, expanding access through futures commission merchants (FCMs), bridging the gap between crypto-native markets and traditional financial infrastructure. The company can now leverage custody services, market supervision, and regulatory reporting channels that meet federal standards.
“People rely on Polymarket because we provide clarity where there is confusion and accountability where there is ambiguity,” said Shayne Coplan, Founder and CEO of Polymarket. “This approval allows us to operate in a way that reflects the maturity and transparency that the U.S. regulatory framework demands. We're grateful for the constructive engagement with the CFTC and look forward to continuing to demonstrate leadership as a regulated U.S. exchange.”
Enhanced compliance and transparency
In preparation for this designation, Polymarket built out a full compliance infrastructure tailored to meet U.S. regulatory expectations. The platform has introduced enhanced surveillance systems, market supervision policies, clearing procedures, and part-16 regulatory reporting capabilities.
The amended order also requires the company to implement additional rules, policies, and processes applicable to intermediated trading before its official launch in the United States.
Polymarket emphasized that it will remain fully subject to the Commodity Exchange Act and all CFTC rules governing Designated Contract Markets (DCMs), including self-regulatory obligations aimed at preserving market integrity and investor protection.
Enforcement through complete legitimacy
Polymarket’s regulatory milestone marks a significant shift from its earlier history. In 2022, the CFTC charged the platform for operating an unregistered derivatives marketplace and imposed a $1.4 million penalty, requiring the company to halt U.S. operations.
Following the settlement, Polymarket re-entered the U.S. market after acquiring QCX and its associated clearinghouse, QC Clearing, which came with valid CFTC registration. This acquisition provided the foundation for Polymarket’s full compliance pathway and eventual approval as an intermediated exchange.
Before the amended order, the CFTC had already issued a no-action letter, permitting Polymarket to begin testing operations through its newly acquired regulated entities. The platform then conducted a soft launch earlier this month, allowing select users to trade live prediction contracts during a closed beta phase.
“The US Exchange is actually live and operational, and people are being onboarded. It’s effectively in a beta test,” Coplan said in an earlier statement.
This early-stage rollout was viewed as a test of the exchange’s new infrastructure before broader public onboarding.
Transformation and growing market presence
Polymarket’s evolution underlines a broader trend in the prediction market industry, the move from unregulated, crypto-based trading toward formalized, exchange-grade financial infrastructure.
Earlier this year, Polymarket introduced bitcoin deposits alongside stablecoins such as USDC and USDT, further integrating established cryptocurrencies into its user experience.
The platform’s success has also attracted significant investment interest. Reports from The Wall Street Journal indicated that Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, is considering a $2 billion investment in Polymarket, potentially valuing the firm between $8 billion and $10 billion.
Bloomberg reports from October said that Polymarket was looking into a funding round at a value of between $12 billion and $15 billion. This shows that investors trust its regulated growth.
Founded by Shayne Coplan, who previously left New York University to pursue the venture, Polymarket has grown into a global platform where traders forecast outcomes in politics, economy, and culture. In 2025 alone, billions of dollars in prediction markets have been traded.
Industry competition and future outlook
Polymarket’s primary competitor, Kalshi, has also been expanding globally. The firm recently raised $300 million at a $11 billion valuation and plans to expand access to over 140 countries, with annualized trading volume approaching $50 billion. Both firms have benefitted from a surge in regulatory clarity, institutional engagement, and broader acceptance of event-based markets.
Looking ahead, Polymarket’s shift from decentralized experimentation to exchange-level compliance reflects a broader regulatory embrace of predictive trading. The company’s latest approval from the CFTC effectively legitimizes the prediction market industry within U.S. financial law, placing it closer to parity with traditional futures exchanges.
With full federal oversight now in place, Polymarket’s transformation is being closely watched across financial and technology circles. For a company once penalized for operating without authorization, the new CFTC approval symbolizes a remarkable turnaround.
Tanya Petrusenko
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