Polymarket Launches US App for Waitlisted Users After CFTC Approval

TLDR

• Polymarket starts US app rollout for waitlisted users after CFTC approval.
• Polymarket’s US platform launch will begin with sports event contracts.
• The US relaunch follows CFTC’s no-action letter issued three months ago.
• Polymarket’s full reopening could push its valuation to $10 billion.

Polymarket, a leading prediction platform, has launched its US app for select waitlisted users after receiving the green light from the US Commodity Futures Trading Commission (CFTC). This marks the beginning of the platform’s relaunch in the United States, with a focus on offering betting markets related to sports events.

The announcement follows a clearance from the CFTC, which issued a no-action letter to a crypto derivatives exchange and clearinghouse acquired by Polymarket, signaling the agency’s approval for Polymarket to operate within the US. The platform’s strategy is to start with sports event contracts and expand to a broader range of markets in the near future.

Polymarket’s US Relaunch

Polymarket’s decision to open the US app to waitlisted users is part of the company’s planned full reopening of its services to the US market. The platform was previously unavailable in the US following regulatory concerns but has since worked with the CFTC to address those issues. The no-action letter issued by the CFTC cleared the way for Polymarket’s return, which is expected to bring new growth opportunities.

The launch will begin with sports event contracts, allowing users to bet on outcomes of various sports events. In a statement shared on social media, Polymarket noted that “sports markets would be just the start, with plans to follow up with a wide range of betting opportunities.”

CFTC Approval Paves the Way for Full Relaunch

The CFTC’s approval of Polymarket’s acquisition of a crypto derivatives exchange and clearinghouse was a crucial step for the platform. The move followed regulatory actions against similar platforms in the past. Polymarket’s management has worked closely with the CFTC to ensure that the platform complies with US financial regulations, a key factor in the approval process.

This regulatory clearance is seen as a turning point for Polymarket. With the approval in place, Polymarket is now looking to re-establish itself as a leader in the prediction market space, especially in the highly competitive US market. The platform’s strategic approach could see it expanding beyond sports events into other event contracts, which will broaden its user base.

Potential Growth and Competition in the Prediction Market

Polymarket’s relaunch could propel its valuation to as high as $10 billion, a figure that positions the platform as a significant player in the rapidly growing prediction market space. The company is in direct competition with Kalshi, another popular prediction platform that has recently raised $1 billion in funding, putting it at a valuation of $11 billion.

Kalshi and Polymarket remain the two largest prediction platforms in terms of trading volume. According to data from Token Terminal, Kalshi recorded a trading volume of around $4.4 billion in October, while Polymarket followed with over $3 billion in volume. The competition between these platforms is expected to intensify as both companies expand their services and user bases.

The Road Ahead for Polymarket

With the rollout of its US app to waitlisted users, Polymarket is positioned to benefit from increased interest in prediction markets, particularly with major events like the US elections. This could lead to a surge in trading activity, as the platform taps into the growing interest in betting on political and sports outcomes.

Polymarket’s efforts to re-enter the US market could provide a new avenue for growth. As the platform expands its offerings, it could attract a broader audience, from casual bettors to more experienced traders. However, it will need to continue working closely with regulators to ensure that it remains compliant with US laws, especially as its reach extends into different market segments.

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