CFTC publishes market maker terms for Polymarket US
The Commodity Futures Trading Commission published terms and conditions for a Market Maker Program on QCX, LLC, doing business as Polymarket US. The document outlines the program's purpose and operational framework for market makers on the CFTC-regulated prediction market exchange. Separately, ProphetX announced that its chief executive officer urged the CFTC to preserve two-sided exchanges in sports prediction markets. The company did not detail the CEO's specific arguments.
The CFTC's formal market maker terms set the liquidity rules that Polymarket must live under, replacing informal guidance with enforceable conditions. For Polymarket, that means dedicating capital to posted obligations or risking program expulsion. The timing tightens the regulatory vise: the CFTC's parallel branding crackdown already forced Kalshi and Polymarket to strip gambling vocabulary from marketing, raising user acquisition costs just as Novig's $125 million opening week is grabbing market share.
ProphetX's CEO outreach shows smaller regulated platforms now lobbying for two-sided exchange structures as a competitive differentiator. The combined pressure means Polymarket must satisfy CFTC market structure rules while rivals argue for alternative models. Each new CFTC document becomes a precedent that Kalshi, Novig, and ProphetX must anticipate in their own compliance planning.