Polymarket has received approval from the CFTC to return to the U.S.! The prediction market is ushering in a new era of regulation.

The Commodity Futures Trading Commission (CFTC) has officially approved the amended designation order for Polymarket, allowing it to operate as a fully regulated exchange intermediary trading platform in the United States. This milestone decision marks Polymarket's official return after a three-year absence from the U.S. market, while signaling that prediction markets will become more deeply integrated into the mainstream financial system.

01 CFTC Approval Details: Intermediary Trading Model Becomes Key

The Commodity Futures Trading Commission (CFTC) officially issued a revised designation order to Polymarket on November 25, 2025, which completely changed Polymarket's legal status in the United States.

Previously, Polymarket could only provide services to users through a crypto-native model, while the newly approved intermediary trading model will fully bring it under the federal regulatory exchange framework.

According to the approved terms, Polymarket will be able to directly connect with intermediaries and clients, facilitating trading on US exchanges.

This means that American users no longer interact directly with the blockchain, but trade through regulated intermediaries such as futures commission merchants (FCMs) and traditional brokers, allowing them to leverage traditional market infrastructure, custody, and reporting channels.

The CFTC's approval is not an isolated case. It reflects the increasing recognition of prediction markets as legitimate financial products by U.S. regulatory agencies.

02 Returning to the Road to America: From Prohibition to Full Compliance

The road for Polymarket to return to the U.S. market is long and arduous. In 2022, the CFTC fined Polymarket $1.4 million for operating an unregistered derivatives exchange and prohibited the platform from serving U.S. customers.

This penalty forced Polymarket to exit the U.S. market.

The turning point occurred in July 2025, when Polymarket acquired QCX LLC and QC Clearing for $112 million.

These two companies previously held the necessary licenses issued by the CFTC, allowing them to operate as both a derivatives exchange and a clearinghouse, which provided Polymarket with the regulatory foundation needed to serve U.S. customers.

In September 2025, the CFTC issued a no-action letter, further clearing regulatory hurdles and effectively allowing the company to conduct business in the U.S. market.

The federal investigations by the Department of Justice and the Commodity Futures Trading Commission have also concluded, with no charges filed, clearing the way for final approval.

Polymarket founder and CEO Shayne Coplan stated that this approval allows the platform to “operate with the maturity and transparency that meets the requirements of the U.S. regulatory framework.”

03 System Upgrade and Compliance Measures

To meet the requirements of the Commodity Futures Trading Commission for designated contract markets, Polymarket has undergone a comprehensive system upgrade and compliance construction.

These measures include the development of enhanced monitoring technology, market supervision policies, clearing workflows, and the Part-16 regulatory reporting system.

These upgrades enable Polymarket to fully comply with the requirements of the Commodity Exchange Act for designated contract markets.

As part of the approval conditions, Polymarket will implement additional rules, policies, and processes for intermediary trading before the official launch, aimed at enhancing compliance and ensuring market integrity.

The platform will continue to operate under the comprehensive supervision of the CFTC, including fulfilling the self-regulatory obligations required for designated contract markets. The upgraded monitoring system will monitor trading activities, while the new clearing procedures will handle trade settlements.

04 Market Impact and Industry Outlook

The CFTC's approval of Polymarket is not just a business milestone; it also represents the maturation of prediction markets as a permanent component of the U.S. financial system.

This regulatory breakthrough is expected to inject significant liquidity into the prediction market space.

Analysis indicates that through the FCMs intermediary model, Polymarket expects to introduce at least $1 billion in initial liquidity, covering event contract trading in politics, sports, entertainment, and other areas, promoting the transformation of prediction markets from niche tools to mainstream financial products.

The approval has also reshaped the competitive landscape of prediction markets. As of mid-November 2025, another CFTC-regulated prediction market, Kalshi, accounted for about 62% of the total trading volume in prediction markets, while Polymarket accounted for 37%.

The combined monthly trading volume between the two platforms reached $450 million, showcasing the rapid growth in the prediction market sector.

Traditional bookmakers are also entering this field. FanDuel has partnered with the Chicago Mercantile Exchange Group (CME Group) to launch a prediction market, while DraftKings is also exploring similar collaboration models.

05 Future Development and Opportunities

After obtaining approval from the CFTC, Polymarket's development prospects are attracting attention. The platform plans to launch its native token POLY in 2026 and intends to airdrop to existing users.

This move may further drive user engagement on the platform.

In terms of institutional collaboration, Polymarket has reached cooperation agreements with sports leagues including UFC and signed partnership agreements with fantasy sports platforms like PrizePicks.

In addition, it has been reported that Mike Novogratz's Galaxy Digital is in talks with Polymarket and Kalshi, hoping to become their liquidity provider.

From a broader perspective, prediction markets, as an information aggregation mechanism, are gradually demonstrating their value.

In the 2024 presidential election, Polymarket accurately predicted Donald Trump's victory, while many traditional polls yielded different results, further demonstrating the accuracy of prediction markets in forecasting.

Future Outlook

As Polymarket combines its world-leading prediction market technology with the well-established financial infrastructure of the United States, prediction markets are reaching a turning point from the margins to the mainstream.

This transformation not only affects traders or cryptocurrency enthusiasts, but may also change the way media, institutions, and even society as a whole predict and assess future events.

The vision of Polymarket founder Shayne Coplan is becoming a reality: “We provide clarity and accountability, and this approval reflects our commitment to a mature and transparent U.S. regulatory framework.”