Polymarket sets up CFTC-regulated US arm as prediction markets boom

Polymarket now runs a CFTC-regulated US arm alongside its global blockchain platform.

The hit

Polymarket has set up QCX LLC, doing business as Polymarket US, a CFTC-designated contract market, according to Forbes. Polymarket, launched in 2020, built its global platform on blockchain technology & historically operated outside US regulation. Kalshi, founded in 2018, operates as a CFTC-regulated exchange. The two platforms are the leading names in a fast-growing prediction markets sector.

Why it matters

Bettors on these platforms trade contracts tied to real-world events rather than betting against a bookmaker. Unlike Kalshi, Polymarket relies on UMA, a decentralised oracle protocol, to resolve most markets automatically. Disputed Polymarket outcomes go to UMA token holders, who debate the situation in Discord forums before voting. Critics say that because voting power depends on token ownership, questions remain about transparency & influence over disputed outcomes.

What happens next

Regulators face a growing overlap between blockchain-based trading, financial exchanges & event wagering, complicating which rules should apply to platforms like Polymarket US, according to Forbes.

Sources: Prediction Markets Are Booming. But What Happens If One Goes Bust?

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