Exciting news from Polymarket, the biggest crypto-based prediction market out there! Today, they revealed that the U.S. Commodity Futures Trading Commission (CFTC) has given them an Amended Order of Designation.
This thumbs-up means Polymarket can now operate an intermediated trading platform, fully compliant with U.S. federal rules for exchanges.
The new approval allows the platform to directly welcome brokerages and customers. Users can trade via futures commission merchants (FCMs) and enjoy traditional services like custody, reporting, and market infrastructure.
“People choose Polymarket because we bring clarity to confusion,” shared Shayne Coplan, the founder and CEO of Polymarket. “This approval lets us operate with the transparency and maturity that U.S. regulations require. We truly appreciate the constructive talks with the CFTC and can’t wait to pave the way as a regulated exchange.”
To get ready for this change, Polymarket has leveled up its systems. They’ve improved surveillance, market supervision policies, clearing procedures, and Part 16 regulatory reporting.
Before the official launch, more rules and processes for intermediated trading will roll out. Polymarket will keep following the Commodity Exchange Act and CFTC regulations, including their self-regulatory duties.
Back in 2022, Polymarket was shut down for running an unregistered derivatives exchange, but they are back in the U.S. after acquiring QCX, a regulated contract market and clearinghouse.
Polymarket Now Accepts Bitcoin
In other news, Intercontinental Exchange (ICE), which owns the New York Stock Exchange, is eyeing a whopping $2 billion investment in Polymarket, possibly valuing the platform between $8 billion and $10 billion, as reported by The Wall Street Journal.
In October, the company was rumored to be seeking a funding round at a stunning $12–15 billion valuation.
At just 27, Shayne Coplan has emerged as the youngest self-made billionaire following this investment. Just a few years back, he was an NYU dropout building this dream from his bathroom!
Big names like 1789 Capital, which has ties to Donald Trump Jr., have also invested, along with Polymarket’s acquisition of the derivatives exchange QCEX for $112 million, which helped them snag a CFTC license!
Meanwhile, competitor Kalshi, another significant prediction market that accepts bitcoin, recently raised $300 million at a $5 billion valuation and is gearing up to expand access to over 140 countries, with yearly trading volume heading towards $50 billion.
