Following notifications from the US Department of Justice and the Commodity Futures Trading Commission, Polymarket, a provider of prediction markets, is no longer under investigation. According to a source familiar with the matter, both the DOJ and CFTC have recently informed Polymarket that they have concluded their inquiries. This development was first reported by Bloomberg.
The DOJ had been investigating Polymarket for allegedly allowing US users to place bets, despite being required to restrict access to US traders. It was verified that at least two US-based individuals were able to place bets on the platform at the time. A spokesperson for Polymarket previously described an FBI raid on the founder's home as 'political retribution,' but did not provide further explanation. On Tuesday, spokespersons for the DOJ, CFTC, and Polymarket declined to comment.
The US has seen a surge in political prediction markets, with the CFTC recently dropping its efforts to block another platform, Kalshi. The US regulatory approach to digital assets has undergone significant changes since Donald Trump's presidency. The Securities and Exchange Commission has dropped over a dozen investigations into crypto firms, while banking regulators have eased their oversight of financial services firms engaging in crypto activities.
Congress is also nearing the passage of a bill to govern stablecoins, which would be sent to Trump for signing into law. Additionally, the House of Representatives is close to advancing a bill that would alter the regulatory approach to digital assets markets.