Polymarket’s U.S. app is rolling out for prospective users on the waitlist beginning Wednesday. The move marks the return of the largest blockchain-based prediction market to the U.S. since it was banned by the Commodity Futures Trading Commission for operating an unregistered derivatives platform in early 2022.
The CFTC has since done an about-face on the nascent betting market sector, one of the fastest-growing areas of the economy.
While the commodities watchdog never outright banned prediction markets, it enforced strict registration for event contracts as “binary options.” However, after losing a legal battle with Polymarket’s main rival, Kalshi, over offering political event contracts in 2024, the CFTC has taken a more permissive approach.
Polymarket, having acquired a licensed derivatives exchange and clearinghouse QCX for $112 million over the summer, received official CFTC clearance to reenter the U.S. on Nov. 25 under an Amended Order of Designation. The startup, founded by early Ethereum investor Shayne Coplan in 2020, is now looking to make its mark in sports betting before opening markets to “everything” in its U.S. version, according to an X post on Wednesday.
Coplan was previously questioned by the U.S. Department of Justice related to Polymarket’s 2024 elections markets.
Sporting competition
Sports represent a significant, though legally dubious, area of growth for leading predictions markets Polymarket and Kalshi.
Both Polymarket and Kalshi have also signed distribution agreements with sports agencies, including the National Hockey League and Professional Pickleball Association, in addition to pursuing individual deals with various leagues. The rivals have also competed to become exclusive partners with non-sports firms, like Kalshi’s agreement with CNN.
In recent months, Polymarket partnered with fantasy sports app PrizePicks and signed on as the designated clearinghouse for the largest sports betting app, DraftKings, for a planned predictions platform.
Robinhood opened pro and amateur football betting markets through a partnership with Kalshi, months after pausing plans related to the NFL’s Super Bowl following CFTC intervention. At times, Robinhood has accounted for over 50% of Kalshi’s trade volume, according to Bernstein.
Kalshi is currently fighting state-level regulators in Nevada and New Jersey, in part, over its sports offerings. In late November, a federal judge said Kalshi would be subject to Nevada gaming rules.
Both Kalshi and Polymarket have seen meteoric growth in the second half of the year, with Kalshi beginning to overtake Polymarket’s volumes in recent months. In October, the best month yet for events betting, Kalshi posted $5.81 billion in volume compared to Polymarket’s $3.7 billion, according to The Block’s data.
Polymarket is currently seeking a valuation of up to $15 billion, having recently secured $2 billion in strategic funding from NYSE parent Intercontinental Exchange at a $9 billion valuation. The startup also named Donald Trump Jr. as an advisor in August.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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