Two major U.S. regulators’ probe into Polymarket, a popular crypto-betting platform, have officially been closed. These investigations were started during the final months of the Biden administration but have now been dropped under President Trump’s pro-crypto stance.
According to a person familiar with the situation, both the U.S. Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC) informed Polymarket earlier this month that their probes were over.
Under Trump’s new administration, there has been a clear shift in tone toward supporting crypto businesses. Many see this week as “Crypto Week” in Washington, as lawmakers prepare to pass new crypto-friendly laws. This political shift likely influenced the decision to end the Polymarket investigations.
Polymarket lets users bet with cryptocurrency on real-world events like elections. Its popularity soared during the 2024 US elections. However, federal regulators believed that Polymarket was allowing US users to place bets despite a 2022 agreement that said it wouldn’t do so unless properly registered.
In November 2024, just after the elections, the FBI raided the home of Polymarket’s 27-year-old CEO, Shayne Coplan. His phone was confiscated, and it was widely believed to be politically motivated. Coplan responded sarcastically on social media, writing, “New phone, who dis?” This struck a chord with many in the cryptocurrency community.
Polymarket had settled with the CFTC in 2022 by agreeing not to serve U.S. users. But investigators suspected that Americans were still using the platform by hiding their locations. The site saw a massive $2.6 billion in trading volume in November alone.
Now that the investigations are closed, Polymarket may try to officially re-enter the U.S. market, either by registering as a regulated futures exchange or by acquiring a company that already has a CFTC license.
Polymarket has strong backing from major investors like Peter Thiel’s Founders Fund. It has also partnered with Elon Musk’s X and xAI to bring prediction market forecasts to Musk’s social media platform.
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