Polymarket Probes Closed as Crypto Rules Ease

U.S. federal authorities have closed both criminal and civil investigations into prediction market Polymarket, ending Department of Justice and CFTC probes that intensified after the 2024 elections amid concerns about U.S. user access through VPNs. The closure comes after a 2022 CFTC settlement barring Polymarket from serving U.S. users and followed an FBI raid on CEO Shayne Coplan, who called the investigation politically motivated. The decision marks a regulatory shift under the Trump administration, aligning with 'Crypto Week' in Congress and anticipated digital asset legislation. The move is expected to allow Polymarket to consider re-entering the U.S. through CFTC registration or acquisition of a licensed company. Market participants see this as part of a broader rollback of Biden-era enforcement and note increased institutional support for crypto. Polymarket’s recent partnerships and fundraising efforts position it for domestic expansion as regulations ease.