CFTC probes whether Polymarket breached its 2022 US ban

what happened

The Commodity Futures Trading Commission is investigating Polymarket to determine whether the prediction market operator honored the terms of a 2022 enforcement deal. Seeking Alpha, citing Reuters and two people familiar with the matter, reports that the probe centers on whether American customers still had access to the platform.

In January 2022, the CFTC fined Blockratize, Inc., the New York-based company doing business as Polymarket, $1.4 million for offering off-exchange event-based binary options without the required designation or registration, and issued a cease and desist order. According to the sources, the settlement pushed the exchange offshore, leaving it behind rival Kalshi. Regulators are now checking whether the company did enough to block US users, including its location verification controls and its advertising in the country.

The report also notes that the CFTC and the Justice Department closed similar inquiries into the 2022 settlement last year.

why it matters

For prediction markets, the probe signals that US regulators are still watching platforms that offer event contracts. The outcome could affect Polymarket's position relative to Kalshi, but the matter is at an early stage and its implications remain unclear.

market impact

Prediction-рынки в США: возможное ужесточение контроля над Polymarket и его конкурентами

tags

instruments