Crypto-based predictions marketplace Polymarket, has secured a deal to return to the US market shortly after federal regulators concluded their investigation into the company.
This acquisition comes on the heels of Polymarket’s rising popularity during the 2024 US presidential election, where users placed substantial bets on outcomes, particularly regarding President Donald Trump’s potential return to office.
These investigations focused on whether Polymarket had allowed US-based traders to access its platform, despite a settlement with the CFTC in 2022 that required the company to block such access due to its unregistered status.
Polymarket gained significant public attention during the 2024 presidential race between Donald Trump and Kamala Harris, with advertising and promotional materials widespread at the Republican National Convention and throughout New York City.
Polymarket’s acquisition of QCX for $112 million aligns with this trend, as the exchange received Commodity Futures Trading Commission licensing approval in July, following its application in 2022.
Previously, the Biden administration had sought to limit the growth of political and sports-themed betting on derivatives exchanges, but the Trump administration has signaled a more favorable outlook toward these products.
Bloomberg asserts that the approval of QCX’s license by the CFTC raises questions about whether the regulator was aware of Polymarket’s impending acquisition at the time. Notably, once a license is granted, the CFTC does not have the authority to intervene in subsequent business deals.
Quintenz’s nomination is set to be voted on by the Senate Agriculture Committee, with the White House advocating for swift confirmation before the August recess.
Featured image from DALL-E, chart from TradingView.com
