🎭 Polymarket’s Hilarious Return: CFTC Says “Yes!” 😂

Law and Ledger is a news segment focusing on crypto legal news, brought to you by Kelman Law – A law firm focused on digital asset commerce.

The following opinion editorial was written by Alex Forehand and Michael Handelsman for Kelman.Law.

Polymarket to Relaunch in the U.S.: A Comedy of Regulations 🎭

In a twist more convoluted than a court farce, Polymarket has finally secured the royal nod from the CFTC to return to U.S. shores, ending a three-year hiatus that began with a 2022 settlement over unregistered derivatives. The magic trick? Acquiring QCEX (QCX LLC and QC Clearing LLC), a CFTC-licensed market and clearinghouse, which the CFTC recently blessed with a wink and a nod.

On September 3, 2025, the CFTC penned a no-action letter (

Staff Letter No. 9113-25

), granting QCX LLC and QC Clearing LLC a pass on swap data reporting. The letter, written with the flair of a poet, assures that the CFTC will not pounce on non-compliance-as long as transactions stick to QCX’s rules and QC Clearing’s clearing. A narrow path, but a path nonetheless!

This bureaucratic ballet sets a precedent as thin as a soufflé. Polymarket, instead of waltzing in as a new entrant, chose to marry an existing licensed market, then danced through regulatory loopholes with a no-action letter. A masterclass in legal acrobatics, proving that with enough paperwork and charm, even the CFTC can be charmed into a compromise.

Equally significant is the legitimization of prediction markets, once the rogue’s gallery of finance. Now, they’re the belle of the ball, with advocates claiming they outshine traditional polling and rival equities. The CFTC’s compliance framework for event contracts is a nod to their growing clout, though one suspects the regulators are still scratching their heads.

The timing, however, reeks of political intrigue. Polymarket’s return coincides with 1789 Capital’s investment (backed by none other than Trump Jr.) and the quiet closure of DOJ and CFTC probes. Is this a coincidence, or a Shakespearean subplot? The question lingers like a bad smell: does political influence grease the wheels of innovation, or is it a recipe for disaster?

Polymarket’s re-entry also throws Kalshi into the spotlight. While Kalshi has been the CFTC’s favorite child, Polymarket’s return adds a dash of competition. Now, two players will jostle for regulatory favor, creating a more dynamic-if legally precarious-landscape. A comedy of errors, perhaps, but one with a cast of thousands.

Polymarket’s CEO, Shayne Coplan, took to the stage to

declare

the platform’s “green light” to resume U.S. operations, praising the CFTC for their “impressive work” and “record timing.” A performance worthy of the Comédie-Française, if only the regulators had a bit more flair.

For legal eagles and financial wizards, this saga illustrates how clever structuring and regulatory flattery can turn compliance barriers into stepping stones. Yet, it also raises thorny questions about fintech’s future: Will the CFTC continue to play nice, or will they demand a encore of enforcement actions? Only time will tell, and perhaps a few more no-action letters.

Kelman PLLC, ever the vigilant audience, continues to monitor crypto’s legal opera. For those wishing to avoid the CFTC’s spotlight,

for a consultation. After all, in this comedy of regulations, it’s best to have a lawyer in the cast.

This article originally appeared at Kelman.law.

2025-09-09 07:58

The following opinion editorial was written by Alex Forehand and Michael Handelsman for Kelman.Law.

Polymarket to Relaunch in the U.S.: A Comedy of Regulations 🎭

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