(Reuters) -The U.S. Commodity Futures Trading Commission on Wednesday approved Polymarket, the world’s largest prediction market, to relaunch in the United States, more than three years after its exit.<\/p>\n
The decision comes amid a debate in the financial sector, with some experts highlighting prediction markets as superior to traditional polls, while others argue that these markets are little more than “digital casinos.”<\/p>\n
Polymarket allows users to profit from predictions on a wide range of events, including sports, entertainment, politics and the economy. Since the U.S. presidential election last year, trading in such event contracts has surged in popularity.<\/p>\n
The regulatory body’s decision follows Polymarket’s $112 million acquisition of QCEX, a CFTC-licensed derivatives exchange and clearinghouse, a move that provides the necessary framework for the company to operate legally in the U.S.<\/p>\n
The CFTC issued a no-action letter granting relief to the derivatives exchange and clearinghouse on certain recordkeeping and reporting requirements for event contracts.<\/p>\n
Polymarket is set to return to the U.S. more than three years after agreeing to block American users from its platform, following a settlement with the Commodity Futures Trading Commission for operating an unregistered derivatives trading platform.<\/p>\n
“Credit to the Commission and Staff for their impressive work. This process has been accomplished in record timing,” said Polymarket’s CEO Shayne Coplan in a post on X.<\/p>\n
Polymarket’s return also follows peer Kalshi’s successful court challenge last year against the CFTC, after which it gained approval to list contracts related to the White House race.<\/p>\n