The U.S. Commodity Futures Trading Commission (CFTC) announced that it will not pursue enforcement against two companies tied to the prediction platform Polymarket.
CFTC Notice
On Wednesday, the CFTC announced that it had issued a no-action letter "regarding swap data reporting and recordkeeping regulations for event contracts" related to QCX LLC and QC Clearing LLC.
Details of the Agreement
The regulator stated: "The divisions will not recommend the CFTC initiate an enforcement action against either entity or their participants for failure to comply with certain swap-related recordkeeping requirements and for failure to report to swap data repositories data associated with binary option transactions and variable payout contract transactions."
Future of Polymarket
This action essentially allows Polymarket to offer event contracts without the reporting requirements under U.S. financial regulations, providing temporary relief from enforcement.
The Polymarket platform continues to operate under temporary relief from regulatory requirements, which may impact its future in the market.
