Polymarket, a crypto-betting platform previously restricted by federal regulators, is set to re-enter the US market. The company has acquired QCX, a derivatives exchange and clearinghouse, to facilitate its return. This move aims to formally open the betting site to US users, building on its popularity in 2024 when significant wagers were placed on Donald Trump’s potential return to office. Polymarket operates a predictions marketplace where users can place bets on various future events using cryptocurrency. The platform facilitates real-time information aggregation through these prediction markets.
Earlier this month, Polymarket received notification that the Justice Department and the Commodity Futures Trading Commission (CFTC) had closed their investigations into the company. These probes examined whether Polymarket continued to allow US-based traders onto its platform despite a 2022 settlement with the CFTC. In the settlement, Polymarket had promised to block US traders due to its lack of registration.
The acquisition of QCX signals a strategic shift, allowing Polymarket to operate legally within the US regulatory framework. This development reflects a broader trend of US authorities re-evaluating actions involving digital-asset firms. According to a statement, Polymarket will pay $US112 million ($172 million) to acquire QCX. QCX had applied for CFTC licensing in 2022 and received approval to operate on July 9.
