Polymarket Shuts Down Markets, Faces $1.4 million Fine From CFTC
WASHINGTON – Prediction marketโ platform Polymarket is ceasing operations of โits markets and will pay a $1.4 million fine after being sanctioned byโ the Commodity Futures Trading Commission (CFTC)โฃ for failing to โขregister as a designated contract market or a swap execution facility, the agency announced today. the CFTC concurrently ordered full refunds to users.
The action comes despite recent approvalsโค signaling Polymarket’s planned re-entry into the U.S. market under a regulated structure. Inโ September, the CFTC issued aโฃ no-actionโ letterโฃ concerning event contractsโค following a request from Polymarket entities QCX LLC, โa designated contract market, and QC Clearing LLC, a derivatives clearing organization. This letter allowed event contracts without triggering standard swap data reporting and recordkeeping mandates.
Further bolstering Polymarket’s position, โIntercontinental Exchangeโ (ICE), parent company ofโ theโค New york Stock Exchange (NYSE), announcedโ a $2 billion strategic โinvestment in Polymarket in October, valuing the company at roughly $8 billion pre-investment. The dealโค positioned ICE as aโ global โฃdistributor of Polymarket’s event-driven data and initiated collaboration on tokenization initiatives.
In November, Polymarketโข announced CFTC approval allowing itโข to operate in the U.S.under a fully regulated exchange structure. “This approvalโฃ allows us to operateโค in a way that reflects โthe maturity and transparency that the U.S. regulatory framework demands,” said Polymarket โคFounderโ and CEO Shayne Coplan in a press โrelease at the time. “We’re grateful for the constructiveโข engagement withโ the CFTC and look forward to continuing to demonstrate leadership as a regulated U.S. exchange.”
