DOJ, CFTC End Polymarket Probes as Trump Warms to Crypto Betting

The U.S. Department of Justice and the Commodity Futures Trading Commission have closed their investigations into Polymarket, the cryptocurrency-based prediction market, Bloomberg reported, citing people familiar with the matter. The company received formal notice earlier this month that both agencies would take no further action.

Regulators opened the probes in late 2023 to determine whether the New York-based platform continued to accept wagers from U.S. residents despite a January 2022 CFTC consent order that required Polymarket to block domestic customers and bring its contracts into compliance with derivatives rules. The Justice Department was also examining potential violations of federal anti-gambling and securities laws.

The decision removes a significant legal overhang for Polymarket and coincides with President Donald Trump’s stated goal of fostering a more accommodating environment for digital-asset businesses, including crypto-based wagering. Bloomberg said the company is evaluating options—such as acquiring a licensed venue—to secure approval to serve U.S. traders, though the 2022 consent decree that bars those users remains in place.

The resolution follows an FBI search of Chief Executive Officer Shayne Coplan’s Manhattan residence last year and arrives amid broader movement in the sector. Earlier on Tuesday, PredictIt, another politics-betting platform, announced a new agreement with the CFTC allowing it to expand its operations.

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