Crypto Platform Polymarket Returns to U.S. After CFTC Approval — A Full Relaunch Begins

Crypto prediction platform Polymarket has officially announced its highly anticipated return to the U.S. market, marking a major milestone in its long and complicated regulatory journey. The relaunch comes after the Commodity Futures Trading Commission (CFTC) granted approval for Polymarket to operate as a regulated exchange in the United States. The development has arrived at a moment of intense global interest in prediction markets, as users increasingly look to event-based trading for insight, speculation, and real-time sentiment.

Polymarket made the announcement through a post on X, revealing that it has begun rolling out its U.S. app to users who previously joined the waitlist. The platform’s initial offering focuses on sports-related markets, while plans are already in place to expand to other categories as regulators and compliance standards allow. The phased launch signals Polymarket’s cautious approach as it reenters a country where it once faced significant legal pressure.

A Long Road Back: From U.S. Exit to Regulatory Approval

The 2022 Shutdown and Fine

Polymarket’s return follows a turbulent period that began in 2022, when the CFTC penalized the platform for operating unregistered event-based binary options markets. As part of the enforcement action, Polymarket agreed to wind down all U.S. operations and paid a civil fine of $1.4 million. The decision forced the company to block U.S. users and relocate the bulk of its activity offshore.

Over the next few years, questions continued to surface regarding whether the platform may still have been accessed by American users despite the ban. This sparked additional scrutiny, including a Department of Justice investigation. The tension peaked when federal agents raided the home of Polymarket’s CEO during the 2024 U.S. presidential election cycle, further elevating the regulatory controversy around prediction markets.

The Regulatory Shift in 2025

The turning point came in mid-2025, when Polymarket acquired a fully licensed U.S. derivatives exchange and clearinghouse. This strategic move enabled the company to operate under an existing CFTC-regulated framework, giving it a compliant entry point back into the American marketplace. With the acquisition completed and the legal architecture in place, both the CFTC and Department of Justice formally closed their investigations, issuing no new charges.

In late 2025, the CFTC issued an amended order officially allowing Polymarket to operate as an intermediated trading platform. This designation mandated strict clearing, reporting, and oversight requirements, but it also offered a stable legal foundation for the platform’s U.S. revival.

Inside the Relaunch: Sports First, More Markets to Come

Polymarket’s new U.S. rollout takes a different form from its prior structure. Rather than functioning solely as a decentralized, crypto-native prediction market, the relaunched version uses an intermediated, regulated exchange model. This means all trades are cleared through licensed entities, built around U.S. commodity-derivatives standards.

The initial launch focuses on sports markets — an area generally considered more straightforward from a regulatory perspective. As the platform scales and demonstrates compliance, Polymarket plans to introduce additional event categories, including potentially politics, entertainment, and financial indicators, depending on CFTC approvals.

By blending traditional market infrastructure with crypto-enabled prediction mechanics, Polymarket aims to attract not only its existing user base but also first-time traders who may have previously avoided decentralized offerings.

Growing Interest in Prediction Markets Boosts Polymarket’s Momentum

Polymarket’s U.S. return comes at a time of explosive interest in prediction markets globally. The past two years have seen a surge in users seeking real-time forecasts on sports, elections, economics, and pop-culture events. With public trust in traditional polling and forecasting institutions declining, prediction markets have quickly gained traction as alternative sources of information — often providing more dynamic and data-driven probabilities than conventional surveys.

This broader rise in interest has had an immediate impact on Polymarket’s growth. The company’s valuation has soared, and earlier this year it raised billions in funding at a multibillion-dollar valuation. The platform also hit new all-time highs in trading volume, liquidity, and active traders, setting records for the number of participants and the scale of its markets.

With its U.S. relaunch now in motion, industry analysts expect Polymarket to push toward new milestones as it taps into the large American user base that was cut off after 2022.

Competition Heats Up: What Polymarket’s Return Means for Rivals Like Kalshi

Polymarket’s reentry into the U.S. market has generated intense discussion, particularly regarding its impact on established competitors such as Kalshi, which has operated in the United States with CFTC approval since 2021. Kalshi’s regulatory head start gave it a strategic advantage after Polymarket’s exit, allowing it to dominate the compliant U.S. prediction-market landscape.

But with Polymarket now rejoining as a fully regulated exchange, the competitive dynamics are expected to shift substantially.

Market Share Battles Ahead

Some market analysts believe Polymarket’s technological sophistication, faster market settlement processes, and crypto-integrated structure could allow it to rapidly reclaim U.S. market share. Polymarket built a reputation internationally for offering highly liquid, engaging, and intuitive markets on political, cultural, and global events — a factor that may attract American traders who previously relied on offshore alternatives.

With both Polymarket and Kalshi now operating as regulated U.S. exchanges, the rivalry between the two platforms is expected to intensify dramatically, potentially reshaping the entire prediction-market ecosystem.

Kalshi’s Expansions and Strengths

Kalshi is not standing still. The exchange has launched tokenized prediction markets and expanded partnerships that deepen its reach, including high-profile media collaborations. The company also recently raised substantial funding at a multibillion-dollar valuation, reinforcing its position as a major force in the industry.

While Kalshi has historically appealed to traditional traders and users unfamiliar with crypto systems, Polymarket’s return introduces serious competition, particularly among younger, crypto-savvy audiences. Polymarket’s use of fast blockchain networks historically gave it strong technical advantages in global markets, though the new U.S. version will rely on exchange intermediaries for compliance.

The question now is whether Kalshi’s early-mover advantage will withstand the arrival of a rejuvenated Polymarket.

Why Polymarket’s Return Is a Turning Point for Prediction Markets

Polymarket’s comeback does more than restore an individual platform — it symbolizes a broader shift in how U.S. regulators, investors, and users view prediction markets.

Mainstream Legitimacy

By operating under strict CFTC oversight, Polymarket’s U.S. exchange adds legitimacy to the entire sector. Event-based contracts have long existed in a gray area, often associated with offshore gambling or unregulated speculation. Polymarket’s compliance framework signals that prediction markets can operate within established financial rules, potentially opening the door for wider institutional adoption.

User Confidence and Stability

A regulated environment provides users with stronger protections, clearer dispute processes, and reliable oversight. This could encourage participation from groups that previously stayed away from decentralized or offshore platforms due to trust concerns.

New Financial Instruments

As prediction markets gain mainstream traction, they may evolve into widely accepted financial forecasting tools. Traders may use them to hedge real-world risks, price uncertain events, or gather collective intelligence. Polymarket’s new structure — bridging crypto technologies with traditional financial compliance — places it at the center of this evolution.

Challenges Still Ahead

Despite the excitement, Polymarket must navigate several challenges:

• Rebuilding trust among users affected by the 2022 shutdown.
• Introducing new markets without triggering additional regulatory scrutiny.
• Competing with entrenched rivals who already have U.S. market familiarity.
• Managing a more complex, intermediated exchange model that imposes new operational burdens.

How Polymarket addresses these obstacles will determine whether its U.S. return becomes a sustained success or merely a symbolic reentry.

A New Era for Polymarket and the Future of Prediction Markets

Polymarket’s return to the United States marks a new chapter for both the company and the broader prediction-market industry. After years of regulatory conflict, substantial fines, legal investigations, and an eventual acquisition of a fully licensed exchange, the platform is reintroducing itself with a compliance-first approach designed to meet the demands of U.S. regulators.

Launching with sports markets and planning a gradual expansion, Polymarket aims to blend its global crypto-driven innovation with a U.S. regulatory framework that emphasizes transparency, reporting, and trader protection. Its reentry not only restores access for American users but also intensifies competition in a sector experiencing rapid growth and rising mainstream interest.

If Polymarket succeeds in merging regulatory compliance with the efficiency and excitement of its traditional model, it could help usher prediction markets into a more legitimate and widely accepted role in modern finance. For now, its return represents a powerful comeback — and potentially the start of a new era for event-based trading in the United States.

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