The prediction platform Polymarket has received operational clearance in the U.S. following a no-action notice from the Commodity Futures Trading Commission (CFTC). This opens new opportunities for the company in the American market.
CFTC No-Action Relief
In a Wednesday statement, the CFTC announced it will not take action against QCX LLC and QC Clearing LLC. The notice pertains to 'swap data reporting and recordkeeping regulations for event contracts'. This allows Polymarket to offer event contracts within the U.S. without the fear of enforcement for failing to report data.
Acquisition of QCEX and Activity Surge
Polymarket expanded its presence in the U.S. markets after acquiring QCEX for $112 million. This agreement provided the company with a licensed derivatives exchange and clearinghouse. In July, the company reported over 11,500 new markets, a 44% increase from the previous month. Notably, Donald Trump Jr. has been appointed to the company's advisory board.
Regulatory Changes and Expansion Paths
The new CFTC ruling highlights a softening regulatory stance of U.S. financial authorities in light of a pro-crypto administration. Unlike the previous tense periods, the company now has the opportunity to expand and offer its services, creating a positive environment for further development.
Receiving clearance from the CFTC for operational activities in the U.S. opens new prospects for Polymarket. With easing regulations, the company continues to grow its activity and expand its market.
