Polymarket Returns to U.S. After CFTC Approval

Crypto prediction platform Polymarket has announced its return to the U.S. after receiving approval from the government’s trading regulator, the CFTC, to operate as an exchange.

Polymarket posted on X that it’s now giving access to its U.S. app to those on the waitlist. The app is launching initially with sports prediction markets, and additional market types will be added later.

This comeback comes after past troubles with the regulators, who accused the platform of offering unregistered event-based derivatives, which led to a $1.4 million settlement and forced Polymarket to focus on following the rules.

The return aligns with growing interest in prediction markets, which has helped the platform raise $2 billion in October at a valuation of $9 billion. In addition, Polymarket hit record highs last month, with a total value of  $3.73 billion and 494,690 active traders, and plans to reach even higher numbers this month.

Polymarket’s Relaunch Sparks New Rivalry in Prediction Markets

Market expert Geiger Capital said that Polymarket’s return to the U.S. will take customers away from Kalshi and traditional sportsbooks. 

Kalshi had an advantage before because it had been legally operating in the U.S. since 2021, but now the competition could shift as both platforms are officially approved. Kalshi is attracting crypto users with Solana, while Polymarket runs on Polygon, which used to give it a crypto edge.

A fresh $1 billion raise has pushed Kalshi’s valuation to $11 billion, according to co-founder Tarek Mansour, who also revealed a new partnership with CNN as competition in the prediction market space intensifies.

Alongside the battle for users, Kalshi is also dealing with a new nationwide lawsuit. According to the lawsuit, Kalshi is running illegal sports betting, misleading customers by calling regular bets trades and acting like a sportsbook through its partners.