US regulators have cleared Polymarket, a crypto-based prediction market, to relaunch after three years in exile.
The CFTC, or Commodity Futures Trading Commission, approved the comeback on September 3. It comes with a fresh investment. The company also appointed Donald Trump Jr. to its advisory board.
Polymarket’s founders launched the platform in 2020. It built markets covering everything from politics to sports to financial outcomes. The platform gained a reputation as one of the most active prediction platforms in crypto.
Yet, the CFTC forced the company to exit in the United States in 2022. It issues a $1.4 million fine for operating an unregistered swaps platform, as well as offering illegal binary options contracts.
Polymarket agreed to restrict United States users, as well as shutter non-compliant markets under the settlement.
The company thrived internationally in the years since, specifically during the heated 2024 US election cycle. This drove record participation.
Today, Polymarket is returning home as a licensed platform with its regulatory obstacles resolved. This includes the acquisition of QCEX to secure compliance.
New backing from 1789 Capital, a venture capital firm based in Palm Beach, has fueled Polymarket’s comeback.
Donald Trump Jr., a partner at 1789 Capital, joined the platform’s advisory board as part of the agreement.
According to the company, Trump Jr. brings decades of experience in forward-thinking business innovation and strategic perspective. This role aimed at advancing the push of Polymarket to mainstream prediction markets.
However, his appointment has raised eyebrows.
Trump Jr. has also served as a strategic advisor to a rival US-based prediction market, since January of the current year, Kalshi.
Antitrust laws like the Clayton Act could invite inspection if regulators see the dual involvement as a conflict of interest. However, it is not uncommon for individuals to advise multiple firms in the same sector.
