The company "Polimarket," the world's largest prediction market, today announced it has received approval from the Commodity Futures Trading Commission (CFTC) to operate under an updated framework, allowing it to function as a regulated trading platform in the US. After a three-year absence from the American market, "Polimarket" will be able to directly interact with brokerage firms and clients, opening up new trading opportunities in American trading venues.
According to the information, this approval provides "Polimarket" with the capability to implement intermediary access, enabling users to trade through firm members of the commissions (FCMs) and utilize traditional market infrastructure, storage, and reporting channels. "Polimarket's" CEO Shane Copland noted: "This approval allows us to operate in accordance with the maturity and transparency required by the American regulatory system."
Updated rules and regulatory requirements
As part of the new framework, "Polimarket" has implemented enhanced surveillance systems, market oversight policies, clearing and reporting procedures in accordance with CFTC requirements. Despite the resumption of activities, "Polimarket" remains subject to all provisions of the Commodity Exchange Act and the relevant CFTC regulations concerning designated contract markets.
Business revival in the US
Additionally, "Polimarket" has acquired QCX, a licensed market operator and clearing company, enabling it to meet regulatory requirements and revive its operations in the US market. It is expected that this new stage of development could increase its valuation to $12-15 billion, representing significant growth from $9 billion in October of last year.
Prospects and competition
Polimarket's return comes at a time of rising demand for alternative financial instruments, such as event contracts tied to economic conditions and elections. Despite the approval, the company still requires additional approvals for American clients to trade directly. This new phase opens opportunities for collaboration with brokerage platforms like Robinhood, potentially increasing competition in the prediction market.
The situation regarding regulatory policy remains unclear, given the CFTC's stance on sports contracts, which could affect Polimarket's expansion. However, with new partnerships with institutional players and changes in the market, the company demonstrates a commitment to growth and development amid a changing regulatory landscape.
