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yesterday

CFTC Staff Grants Narrow No-Action Relief Tied to Polymarket’s QCX Deal, Paving Way for U.S. Return

Limited relief for QCX on swap reporting creates a pathway for U.S. event contracts, with Polymarket still finishing engineering and compliance.

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Bob Donnan-Imagn Images
Signage is seen outside of the US Commodity Futures Trading Commission (CFTC) in Washington, D.C., U.S., August 30, 2020. REUTERS/Andrew Kelly/File Photo
Polymarket CEO confirms readiness to launch in US after CFTC event contract ruling

Overview

  • The CFTC’s Division of Market Oversight and Division of Clearing and Risk issued a staff-level no-action position for QCX LLC and QC Clearing LLC covering certain swap reporting and recordkeeping tied to event contracts.
  • The relief is conditional, limited in scope, and consistent with past treatment for binary or event-style products, and it does not constitute a full commission ruling or address Polymarket directly.
  • Polymarket’s $112 million acquisition of the CFTC-licensed QCX exchange and clearinghouse in July provides the regulatory framework for issuing U.S. markets through those entities.
  • Company investigations by the Justice Department and the CFTC were closed in July, and CEO Shayne Coplan characterized today’s step as a green light to go live.
  • Polymarket remains unavailable to U.S. users for now, with engineering work, stress testing, and meeting ongoing CFTC requirements expected before a relaunch, as the firm positions against rival Kalshi and fields new investor scrutiny including from 1789 Capital and Donald Trump Jr.