Polymarket, the leading crypto-based prediction market globally, has received an Amended Order of Designation from the U.S. Commodity Futures Trading Commission (CFTC). This significant approval permits Polymarket to operate as an intermediated trading platform, fully adhering to federal rules for U.S. exchanges. The designation empowers the platform to directly onboard brokerages and customers, enabling users to trade through futures commission merchants (FCMs) and gain access to traditional custody, reporting, and market infrastructure.

Shayne Coplan, founder and CEO of Polymarket, emphasized the platform's role in providing clarity and expressed gratitude for the constructive engagement with the CFTC. He stated, “People rely on Polymarket because we provide clarity where there is confusion. This approval lets us operate with the maturity and transparency the U.S. regulatory framework demands. We’re grateful for the constructive engagement with the CFTC and look forward to leading as a regulated exchange.”

In preparation for this new operational phase, Polymarket has significantly upgraded its systems. These enhancements include improved surveillance, comprehensive market supervision policies, robust clearing procedures, and compliance with Part 16 regulatory reporting. Additional rules and processes specifically for intermediated trading are set to be implemented before the official launch. Polymarket will continue to operate under the stringent requirements of the Commodity Exchange Act and CFTC regulations, including its self-regulatory obligations.

This regulatory milestone marks a comeback for Polymarket in the U.S. market, following a 2022 ban for operating an unregistered derivatives exchange. The platform re-entered the U.S. after strategically acquiring QCX, a regulated contract market and clearinghouse, and also secured a CFTC license through the acquisition of derivatives exchange QCEX for $112 million.

Beyond regulatory advancements, Polymarket has expanded its financial offerings, now accepting direct bitcoin deposits. This allows users to fund their accounts with BTC, in addition to stablecoins such as USDC, USDT, and other cryptocurrencies.

The platform is also attracting considerable investor interest. Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, is reportedly considering a substantial $2 billion investment in Polymarket. This potential deal could value the platform between $8 billion and $10 billion, according to reports from The Wall Street Journal. Earlier in October, the company was exploring an even higher funding round, potentially valuing it between $12 billion and $15 billion. Such investments have propelled Shayne Coplan, at just 27 years old, to become one of the youngest self-made billionaires. Notably, Coplan, an NYU dropout, built the company from his bathroom just a few years ago. Polymarket has also garnered investment from firms like 1789 Capital, which is backed by Donald Trump Jr.

In the competitive prediction market landscape, Kalshi, another significant platform accepting bitcoin, recently secured $300 million in funding at a $5 billion valuation. Kalshi plans to extend its access to over 140 countries and is witnessing its annualized trading volume rapidly approaching $50 billion, indicating a dynamic and growing sector.