- The blockchain-based ‘prediction market’, Polymarket, has been given the green light to re-enter the US market after two companies it acquired in order to legally offer its services were issued a no-action letter by the CFTC.
- The no-action letter means the CFTC won’t take regulatory action for past breaches and will allow Polymarket to offer its services in the US under specific conditions.
- Meanwhile in Australia the Australian Communications and Media Authority (ACMA) last month issued a request to Aussie ISPs to block access to Polymarket after it was found to be illegally offering gambling services.
Blockchain-based ‘prediction market’ Polymarket, which exploded in popularity during last year’s US presidential election, has been cleared by the Commodity and Futures Trading Commission (CFTC) to relaunch its US operations.
The CFTC’s Division of Market Oversight and the Division of Clearing and Risk green-lit Polymarket’s return to the US in a no-action letter dated September 2, 2025. The regulator explained it would be taking a no action position against QCX LLC., a fully-licensed US-based exchange and its associated clearing house company, QC Clearing, for failures to comply with certain regulatory requirements.
Both QCX and QC Clearing were acquired by Polymarket in July for US$112 million (AU$171m) specifically in order to facilitate the platform’s return to the US market after it was barred from operating in the US by the CFTC in 2022. The two entities have since been rebranded as Polymarket US and Polymarket Clearing, respectively.
“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 recordkeeping requirements and for failure to report to swap data repositories, data associated with binary option transactions and variable payout contract transactions,” the regulator explained in a statement published to its website.
The decision by the CFTC not to take any action means Polymarket will be able to operate in certain, specifically defined ways in the US without attracting any enforcement action from the CFTC.
The no-action letter applies only in narrow circumstances and is comparable to no-action letters issued for other similarly situated designated contract markets and derivatives clearing organization.
CFTC statementThe regulatory go-ahead comes after Axios reported last week that the investment firm 1789 Capital, which counts Donald Trump Jr. as a partner, recently invested several million dollars into Polymarket. Axios also reported that Donald Trump Jr. is set to join Polymarket’s advisory board.
Polymarket’s CEO, Shayne Coplan, took to X to celebrate the CFTC’s landmark ruling, writing that it gives the company “the green light to go live in the USA,” adding “this process has been accomplished in record timing.”
Related: CFTC Adopts Nasdaq’s Cutting-Edge Surveillance to Police Derivatives and Crypto Markets
Polymarket’s US Go-Ahead Comes Just Weeks After Aussie Ban
While things may be looking up for Polymarket in the US, in Australia, it’s a different story. Just weeks ago, the Australian Communications and Media Authority (ACMA) issued a request to Aussie internet service providers (ISPs) to block access to Polymarket and given that ISPs are obliged to comply with ACMA requests, this essentially amounts to a ban on Polymarket in Australia.
The request by ACMA was triggered after it became aware Polymarket was offering and promoting markets on the outcome of the Australian Federal Election held earlier this year, despite not being licensed to offer gambling services.
In a statement, ACMA warned Australian consumers that companies offering gambling services without a license are unlikely to be safe to deal with, explaining that “even if a service looks legitimate, it’s unlikely to have important customer protections. This means Australians who use illegal gambling services risk losing their money.”
Polymarket is also banned from operating in several other countries for similar reasons — countries imposing such bans include Singapore, France, Switzerland and Belgium.
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