The Commodity Futures Trading Commission (CFTC) has given the green light to the crypto-based prediction market Polymarket to go live in the U.S., CEO Shayne Coplan shared on X on Sep. 3.

The CFTC staff  announced taking a "no-action position" regarding swap data reporting and recordkeeping regulations for event contracts in response to a request from QCX — a CFTC-licensed derivatives exchange Polymarket acquired  for $112 million in July.

Related: What is Crypto? Cryptocurrency explained

Investigation into Polymarket

Launched in 2020, the New York City-headquartered Polymarket is the world's largest prediction market. It lets traders predict events like Bitcoin price, U.S. election results, Taylor Swift's engagement, etc., by paying with cryptocurrency.

In 2022, the platform was charged with offering illegal event-based options to U.S. users. Consequently, it restricted access to Americans and paid $1.4 million in fines.

However, the authorities continued to suspect its engagement with U.S. users, and the Federal Bureau of Investigation (FBI) agents raided Coplan's Manhattan penthouse in November 2024 around the presidential election — an event Polymarket users bet a lot on.

More News:

• X (Twitter) partners with prediction market Polymarket

• Taylor Swift's engagement just made one crypto trader $3,000 richer

• Nearly 100% of traders nailed Andy Byron's exit as Astronomer CEO

Trump, crypto, and Polymarket

However, Donald Trump emerged as the next president, and things began to change for the better for the crypto industry. In July 2025, the Department of Justice (DOJ) and the CFTC closed their investigation  into Polymarket.

The latest development comes only a week after 1789 Capital, a venture capital fund Donald Trump Jr. joined as a partner in late 2024 following his father's election victory, invested in Polymarket. The VC fund waited until the platform could legally re-enter the U.S. market to make the investment.

This story was originally reported by TheStreet on Sep 3, 2025, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.