The U.S. Department of Justice and the Commodity Futures Trading Commission (CFTC) have concluded their investigation into the crypto-based prediction platform, Polymarket, initiated during the final months of the Biden administration.
Closure of the Investigation into Polymarket
The investigation into Polymarket was launched in the last months of Biden's presidential term. It was officially closed earlier this month. The platform had agreed to restrict access to U.S.-based users after a 2022 settlement with the CFTC, but federal agencies were examining whether it violated that agreement by allowing bets from U.S. residents through workarounds like virtual private networks (VPNs).
Reaction to the Closure and Its Consequences
Industry advocates welcomed the closure of the investigation, as it may open opportunities for Polymarket to return to the U.S. market. Legal analysts speculate that the company may seek registration as a designated contract market with the CFTC or pursue partnerships with already licensed entities.
Crypto Market under Trump Administration
The preparation of major legislation regulating digital assets is taking place amid changes in the U.S. administration. Trump is appointing crypto-friendly individuals to key positions, which may lead to less stringent regulation. For instance, Brian Quintenz, a former CFTC commissioner, is expected to lead the CFTC, potentially fostering a more permissive approach toward innovative financial instruments based on blockchain technology.
The closure of the investigation against Polymarket reflects potential changes in the regulation of the crypto industry in the U.S., which may facilitate further development.
