Polymarket Cleared by U.S. Regulators as Crypto Oversight Softens Under Trump

Polymarket, a major player in blockchain-based prediction markets, is no longer under investigation by U.S. authorities. The Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC) have officially closed their inquiries into the platform, according to a source familiar with the matter. Bloomberg first reported the development earlier this week.

The investigations centered on allegations that Polymarket allowed U.S. users to place bets, despite restrictions prohibiting such activity. CoinDesk had previously confirmed that at least two U.S. residents were able to use the platform, raising concerns about regulatory compliance. Last year, the FBI reportedly raided the home of Polymarket founder Shayne Coplan, which the company’s spokesperson described as “obvious political retribution.” However, no additional details were provided at the time.

The CFTC and DOJ have declined to comment, as has Polymarket. This regulatory closure comes at a time when interest in political prediction markets is surging in the U.S. In May, the CFTC dropped its legal challenge against Kalshi, another prediction market platform.

This shift in enforcement aligns with a broader regulatory pivot in the U.S. crypto landscape following Donald Trump’s return to the presidency. The Securities and Exchange Commission (SEC) has reportedly dropped more than a dozen crypto-related investigations and lawsuits. Meanwhile, banking regulators have started easing restrictions on financial institutions engaging with digital assets.

In addition, Congress is nearing the passage of key legislation that could reshape the digital asset space. A stablecoin regulation bill is expected to reach Trump’s desk soon, and the House is close to advancing a broader framework for crypto market oversight.

These developments suggest a friendlier regulatory environment for crypto firms operating in the U.S.