The U.S. Commodity Futures Trading Commission (CFTC) has confirmed it will refrain from taking enforcement action against two entities affiliated with the crypto prediction market platform Polymarket, responding to a request for regulatory relief submitted in July.
Key points:
- The CFTC has issued a no-action stance for QCX LLC and QC Clearing LLC, affiliated with Polymarket, allowing them to temporarily bypass certain swap reporting and recordkeeping requirements.
- Polymarket CEO Shayne Coplan confirmed the company received regulatory approval to resume operations in the U.S., noting the process was completed βin record timing.β
- The move signals a potential shift in U.S. crypto regulation, providing clearer guidance for innovative platforms and possibly encouraging broader adoption of decentralized prediction markets.
On Wednesday, the CFTCβs Division of Market Oversight and Division of Clearing and Risk announced they would adopt a no-action stance on swap data reporting and recordkeeping requirements for event contracts. The decision comes in response to a request from QCX LLC, a designated contract market, and QC Clearing LLC, a derivatives clearing organization.
βThe divisions will not recommend the CFTC initiate an enforcement action against either entity or their participants for failure to comply with certain swap-related recordkeeping requirements and for failure to report to swap data repositories data associated with binary option transactions and variable payout contract transactions,β the notice stated.
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The CFTCβs decision effectively allows Polymarketβs affiliated entities to offer event contracts without immediately meeting certain reporting and recordkeeping requirements, providing temporary regulatory relief while maintaining overall compliance obligations.
Polymarketβs founder and CEO, Shayne Coplan, announced on X that the company had been βgiven the green light to go live in the USAβ by the CFTC. He praised the commission and its staff for their role in the decision, noting that the process had been βaccomplished in record timing.β
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The CFTCβs decision marks a significant moment for the U.S. crypto ecosystem, signaling a potential shift in how regulators approach innovative financial platforms. This could encourage other digital asset businesses to engage more openly with U.S. oversight, fostering transparency and compliance while maintaining flexibility for emerging technologies.
As Polymarket prepares to resume operations, regulatory clarity could play a key role in shaping the neΡ t phase of growth and adoption for prediction markets. The move may ultimately signal a broader shift toward integrating decentralized platforms into mainstream financial markets in the United States.
