As Polymarket continues its push to relaunch in the U.S., today the prediction market platform announced that it received another important approval from the Commodity Futures Trading Commission (CFTC).
The CFTC issued an Amended Order of Designation that allows Polymarket to operate as an “intermediated trading platform,” according to a news release. This permits Polymarket to partner with CFTC-designated Futures Commission Merchants to facilitate prediction markets on the FCMs’ platforms.
The amended order lets Polymarket team up with retail brokerages and other platforms, like PrizePicks, to provide event contracts, which could greatly increase liquidity once the prediction exchange goes live in the U.S.
“People rely on Polymarket because we provide clarity where there is confusion and accountability where there is ambiguity,” Polymarket founder and CEO Shayne Coplan said in the release. “This approval allows us to operate in a way that reflects the maturity and transparency that the U.S. regulatory framework demands. We’re grateful for the constructive engagement with the CFTC and look forward to continuing to demonstrate leadership as a regulated U.S. exchange.”
Kalshi received similar amended order in January
The CFTC approves entities as Designated Contract Markets (DCM), which allows them to offer prediction markets on their primary platforms nationwide. But to be able to partner with an FCM to fuel those markets on an outside platform, DCMs must request and receive CFTC permission to modify their original Order of Designation, which then permits intermediated trading.
The CFTC granted Kalshi, Polymarket’s soon-to-be primary competitor in the U.S., the same amended order on Jan. 17.
That designation has allowed Kalshi to partner with platforms that have been approved as FCMs, including retail brokers like Robinhood and Webull. These partnerships have greatly helped Kalshi increase engagement, trading volume and market liquidity. Piper Sandler analysts recently estimated that Robinhood users account for 25%–35% of Kalshi’s daily trading volume.
Polymarket now cleared to offer event contracts through PrizePicks
Polymarket will now be able to enter partnerships similar to Kalshi’s alliance with Robinhood, which could help the platform’s growth when it does return to the U.S. and potentially match Kalshi’s competitive edge in that area.
In the news release, Polymarket states that it has “developed enhanced surveillance systems, market supervision policies, clearing procedures, and … regulatory reporting capabilities.” The prediction platform also says it will introduce additional rules and policies for its intermediated trading prior to its official launch.
PrizePicks, a leading fantasy sports platform that is also a registered FCM, announced earlier this month that it was partnering with Polymarket to offer its prediction markets on the PP platform. But three days later, PrizePicks launched its sports event contracts in select states via Kalshi.
After the Kalshi markets launch, a PrizePricks representative told Prediction News that it planned on working with “multiple DCMs,” suggesting Polymarket contracts will also be forthcoming on the platform. The latest CFTC action now clears that path, so PrizePicks could have Polymarket event contracts alongside Kalshi’s prediction markets shortly after its U.S. launch, which could happen at any moment.
