CFTC Clears Polymarket for U.S. Market Launch
The post CFTC Clears Polymarket for U.S. Market Launch appeared on BitcoinEthereumNews.com. The Commodity Futures Trading Commission (CFTC) has cleared the path for Polymarket, a crypto-powered prediction platform, to operate legally in the United States. The approval came through a no-action letter issued by the regulator’s Division of Market Oversight and Division of Clearing and Risk. CFTC Letter and Polymarket Acquisition of QCX Enables Legal Path for U.S. Return The CFTC no-action letter means the regulator will not pursue enforcement against event contracts traded on QCX LLC, a designated contract market, and QC Clearing LLC, its affiliated clearinghouse. Also, the letter specifies that enforcement will not apply to failures in swap data reporting or recordkeeping for binary options and variable payout contracts cleared through QC Clearing. These exemptions mirror treatment given to other registered exchanges and clearinghouses. Both entities were acquired by Polymarket as part of its strategy to reenter the U.S. market after earlier regulatory setbacks. This move gives Polymarket a compliant structure to operate under CFTC oversight. By securing QCX and QC Clearing, Polymarket gained direct access to these allowances. It provided the platform with the legal framework needed to bring its platform back to American users. This aligns with a recent CFTC framework, which was aimed at providing clarity to bring back offshore crypto exchanges to the U.S. CFTC staff confirmed the exemptions followed a formal request by QCX and QC Clearing, now under Polymarket’s ownership. The deal effectively ties the platform’s future to the operational infrastructure of a registered exchange and clearinghouse. Regulatory Shift Opens Door for Polymarket’s Entry into U.S. Prediction Markets Before this approval, Polymarket had been fined by the CFTC in 2022 for selling unregistered event contracts to U.S. customers. Since then, it has been making efforts to re-build trust with regulators by following a compliant path. Another growing area in the crypto market is…
The post CFTC Clears Polymarket for U.S. Market Launch appeared on BitcoinEthereumNews.com.
The Commodity Futures Trading Commission (CFTC) has cleared the path for Polymarket, a crypto-powered prediction platform, to operate legally in the United States. The approval came through a no-action letter issued by the regulator’s Division of Market Oversight and Division of Clearing and Risk. CFTC Letter and Polymarket Acquisition of QCX Enables Legal Path for U.S. Return The CFTC no-action letter means the regulator will not pursue enforcement against event contracts traded on QCX LLC, a designated contract market, and QC Clearing LLC, its affiliated clearinghouse. Also, the letter specifies that enforcement will not apply to failures in swap data reporting or recordkeeping for binary options and variable payout contracts cleared through QC Clearing. These exemptions mirror treatment given to other registered exchanges and clearinghouses. Both entities were acquired by Polymarket as part of its strategy to reenter the U.S. market after earlier regulatory setbacks. This move gives Polymarket a compliant structure to operate under CFTC oversight. By securing QCX and QC Clearing, Polymarket gained direct access to these allowances. It provided the platform with the legal framework needed to bring its platform back to American users. This aligns with a recent CFTC framework, which was aimed at providing clarity to bring back offshore crypto exchanges to the U.S. CFTC staff confirmed the exemptions followed a formal request by QCX and QC Clearing, now under Polymarket’s ownership. The deal effectively ties the platform’s future to the operational infrastructure of a registered exchange and clearinghouse. Regulatory Shift Opens Door for Polymarket’s Entry into U.S. Prediction Markets Before this approval, Polymarket had been fined by the CFTC in 2022 for selling unregistered event contracts to U.S. customers. Since then, it has been making efforts to re-build trust with regulators by following a compliant path. Another growing area in the crypto market is…
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