- DOJ and CFTC formally closed investigations into Polymarket’s U.S. betting operations.
- Regulatory shift under Trump eases pressure on crypto firms like Polymarket and Kalshi.
- Polymarket could reenter the U.S. by registering with the CFTC or acquiring a licensed platform.
The U.S. Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC) have formally closed their investigations into Polymarket, a cryptocurrency prediction market. The decision follows months of investigations into whether the company permitted U.S.-based users to make wagers in violation of a previous regulatory settlement.
According to Shayne Coplan, Polymarket’s CEO, the company received formal letters this month from both agencies stating that their respective investigations had concluded. The DOJ initiated its investigation late last year, while the CFTC reopened its investigation to ensure the platform’s compliance after Polymarket reached a settlement with the CFTC in 2022, which prohibited the company from offering services to U.S. customers.
Polymarket Faced Scrutiny Over U.S. User Access
Polymarket faced regulatory scrutiny following accusations by the U.S. authorities that it accepted bets from American users despite its settlement. In January 2022, the CFTC imposed a fine of $1.4 million on the company, citing it had not registered as a swap execution facility and required it to block all U.S. traffic. The platform had agreed to close down non-compliant markets and impose restrictions.
Despite those efforts, federal investigators alleged that U.S. users were still able to access the site using virtual private networks (VPNs) or other methods. The issue escalated in November 2024 when FBI agents executed a court-authorized raid at Coplan’s Soho apartment in New York. Coplan later accused the Biden administration of politically motivated action, stating the raid was part of “a last-ditch effort” targeting firms seen as aligned with opposing views.
Reports later verified that at least two U.S.-based traders had managed to place bets during the period in question, triggering renewed scrutiny. However, this month, both the DOJ and the CFTC sent letters to Coplan confirming that their investigations were closed. No charges were filed.
Polymarket emerged most prominently during the 2024 presidential campaign, during which more than $100 million was bet on the outcome. The platform’s monthly trading volume was 1.16 billion in June 2025, but it had just over 242,000 active traders.
Regulatory Shift Signals Easing Crypto Environment
The closure of these investigations comes during a broader policy shift in Washington. Under President Trump’s administration, regulators have begun easing pressure on crypto firms. The Securities and Exchange Commission has dropped multiple enforcement actions, and the CFTC recently ended its attempt to block rival prediction platform Kalshi from operating in the U.S.
Congress is also gearing up to pass important pro-crypto bills. Legislators are likely to approve bills regulating stablecoins and the larger digital asset ecosystem, all of which industry stakeholders are terming as “Crypto Week.” These operations are an earlier indicator of a friendlier climate in crypto and prediction markets.
Related: Polymarket to Raise $200M and Reach Over $1B in Valuation
Polymarket Could Explore CFTC Registration
Following the lifting of the legal obstacles, Polymarket could seek to return to the U.S. market in a legally compliant manner. The company’s options encompass filing for registration as a futures exchange with the CFTC or purchasing a company with a regulatory license. Such moves would bring Polymarket under formal U.S. oversight while enabling it to operate at scale.
Polymarket has also continued expanding its partnerships. In June, the company announced a collaboration with Elon Musk’s social platform X and his AI venture xAI to provide real-time event forecasts. The new partnership positions Polymarket as a leading player in combining blockchain prediction markets with social and AI tools.
The company is also closing a $200 million fundraising round, which would value the platform at over $1 billion, according to reports. The round is led by Founders Fund, a venture capital firm co-founded by Peter Thiel. The funding strengthens Polymarket’s position in the prediction market space and supports its expansion plans.
Having resolved its legal issues, Polymarket appears ready to develop in a more favorable regulatory environment. The result could serve as a guide on how crypto prediction websites can transition to compliance in the U.S. while continuing to grow.
