Polymarket Cleared to Reinstate Services in the US, Faces Ban in Australia
Polymarket, a blockchain-based prediction market, has received approval from the Commodity Futures Trading Commission (CFTC) to resume its operations in the US. This development follows a strategic acquisition of two companies that enable Polymarket to offer its services legally. After being barred by the CFTC in 2022 for regulatory infractions, the firm has successfully navigated back into the market.
On September 2, 2025, the CFTC issued a no-action letter, indicating it will refrain from taking enforcement action for past compliance issues faced by QCX LLC. and QC Clearing, the two companies acquired by Polymarket for US$112 million (AU$171 million). The acquisition aimed specifically at re-establishing Polymarket’s presence in the US market has led to the rebranding of these entities as Polymarket US and Polymarket Clearing.
The CFTC’s letter essentially allows Polymarket to continue operating under defined conditions, alleviating any immediate threat of punitive measures from the regulator. According to the CFTC, this decision is similar to those issued for other contract markets and derivatives clearing organisations that have encountered similar circumstances.
In a recent statement, the CFTC confirmed that it will not pursue enforcement actions against either QCX or QC Clearing for failures related to record-keeping and reporting requirements in connection with binary options and variable payout contracts. This move significantly paves the way for Polymarket to operate again in a regulated capacity within the US.
Adding to its momentum, Polymarket recently attracted substantial investment from 1789 Capital, which includes Donald Trump Jr. as a notable partner. The investment is believed to signal confidence in Polymarket’s resurgence and future potential. Trump Jr. is also expected to join Polymarket’s advisory board, furthering its profile in the market.
Polymarket’s CEO, Shayne Coplan, expressed his enthusiasm on social media, indicating that this regulatory green light represents a significant milestone for the company, also highlighting the quick turnaround in achieving re-entry into the US market.
Contrasting Developments in Australia
While Polymarket celebrates its US victory, the situation in Australia presents a contrasting narrative. Just weeks prior to the CFTC’s decision, the Australian Communications and Media Authority (ACMA) mandated local Internet Service Providers (ISPs) to block access to Polymarket. This action stems from Polymarket’s illegal offering of gambling services, particularly its promotion of markets related to the Australian Federal Election outcomes without proper licensing.
In their statement, ACMA cautioned Australian consumers about the risks of engaging with gambling services that lack official licensing, as such platforms may not provide necessary consumer protections. Authorities have noted that users risk losing their funds when dealing with unlicensed entities.
Polymarket’s operational challenges are not limited to Australia; similar regulatory bans exist in other countries, including Singapore, France, Switzerland, and Belgium, where the offering of unlicensed gambling services has been met with prohibitions.
In summary, while Polymarket’s path has opened up again in the US, buoyed by supportive investments and regulatory approvals, the landscape in Australia remains fraught with challenges. The duality of Polymarket’s situation underscores the complexities facing innovative platforms in the rapidly evolving world of blockchain and digital finance.
