Polymarket, the crypto-based predictions platform once sidelined by US regulators, is set to return to the American market through the acquisition of a registered derivatives exchange.
The move marks a significant reversal for the New York-based startup, which had faced regulatory scrutiny and was forced to block US users in 2022.
Now, following the closure of federal investigations, Polymarket is poised to legally reopen its doors to American traders.
QCX acquisition paves legal path back
Polymarket has agreed to acquire QCX, a relatively obscure derivatives exchange, for $112 million, Bloomberg reported citing sources familiar with the deal.
The acquisition will give Polymarket a regulatory foothold in the US, allowing it to operate within legal frameworks overseen by the Commodity Futures Trading Commission (CFTC).
QCX applied for CFTC licensing in 2022 and received regulatory approval to operate on July 9, just days before the deal was finalized.
A Polymarket spokesperson confirmed the acquisition, while a QCX representative declined to comment.
The CFTC has yet to issue a public response to the deal.
The acquisition is expected to clear the way for Polymarket to formally offer its prediction markets to US-based users, legally, for the first time since its run-in with regulators two years ago.
The timing of the transaction follows the recent closure of two federal investigations.
The US Department of Justice and the CFTC had both been examining whether Polymarket continued to permit US users on its platform after the company agreed in 2022 to restrict access from US-based traders as part of a settlement.
That deal came after the CFTC ruled that Polymarket was operating unregistered event-based binary options markets.
Regulatory reversal reflects political shift
The return of Polymarket to the US comes amid a broader shift in federal attitudes toward the crypto industry.
The changing attitude reflects a growing willingness under the Trump administration to ease regulatory burdens on digital asset firms, a departure from the more aggressive enforcement stance seen during the Biden era.
Polymarket’s re-entry is seen as part of this broader recalibration.
It follows mounting pressure from crypto advocates for clearer, more accommodating rules to support innovation in the blockchain and decentralized finance sectors.
While the CFTC has not commented publicly on its role in the QCX approval, the move signals a greater openness to allowing prediction markets to operate within the bounds of US law.
Polymarket’s rise amid 2024 election buzz
Polymarket gained national attention in 2024 due to its surging popularity during the US presidential election season.
Millions of dollars were wagered on topics ranging from political races to macroeconomic trends, with a notable focus on Donald Trump’s potential return as President of the United States.
The company, led by founder Shayne Coplan, became a cultural flashpoint as signs advertising the platform appeared around major events like the Republican National Convention and across New York City.
These promotions introduced millions of Americans to prediction markets as a form of crowd-based forecasting and speculative trading.
Now, with regulatory barriers lifted and a legal operating structure in place, Polymarket appears ready to capitalize on its rising profile.
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