Prediction markets provider Polymarket has recently emerged victorious as both the U.S. Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC) concluded their investigations into the platform. This development marks a significant milestone for Polymarket, as it navigates the complexities of operating within the U.S. regulatory landscape.
According to a source familiar with the matter, the DOJ and CFTC notified Polymarket that their inquiries had been formally wrapped up. The news was first reported by Bloomberg, indicating a shift in the regulatory approach towards online betting and prediction markets.
The investigations had their roots in concerns that Polymarket allowed U.S. users to place bets despite being mandated to block access from U.S. traders. Reports surfaced last year of at least two U.S.-based individuals being able to engage in betting activities on the platform. This drew the scrutiny of federal regulators who were keen to ensure compliance with existing laws.
A spokesperson for Polymarket suggested that the FBI’s previous raid on founder Shayne Coplan’s home was perceived as “obvious political retribution.” However, further inquiries into the rationale behind this assertion went unanswered, leaving stakeholders speculating about the underlying motives.
Despite the lack of comments from representatives of the DOJ, CFTC, and Polymarket in the wake of this announcement, the conclusion of the investigations allows Polymarket to continue its operations unimpeded. This conclusion comes at a time when political prediction markets are gaining traction in the U.S., as evidenced by the CFTC’s recent decision to drop its efforts to block another platform, Kalshi.
Additionally, the landscape for digital assets in the U.S. is evolving. The change in regulatory posture since Donald Trump’s second presidential campaign has been notable, with the Securities and Exchange Commission (SEC) halting several investigations and active court cases against cryptocurrency firms. Furthermore, banking regulators are showing increased leniency towards financial firms looking to engage with crypto markets.
Congress is also poised to advance significant legislation governing stablecoins, a move that underscores the changing regulatory framework surrounding digital assets. As the House of Representatives gears up to modify the operational oversight of the digital asset market, the landscape appears ripe for innovation and growth.
UPDATE (July 15, 2025, 17:02 UTC): Adds CFTC declining to comment.
