Prediction Markets Edge Into Mainstream Brokerages as Polymarket Gains Regulatory Footing
Prediction markets are quietly infiltrating brokerage platforms. The recent regulatory approval for Polymarket—achieved through its acquisition of CFTC-licensed entities QCX LLC and QC Clearing—has created a pathway for event contracts to appear in mainstream trading apps. These markets will likely surface as yes/no questions on economic events or crypto developments within brokerage interfaces.
The CFTC's September 2025 no-action letter provided critical exemptions for event contracts, followed by an Amended Order of Designation in November that formally greenlit Polymarket's US operations. This regulatory scaffolding transforms what could have been dismissed as gambling into structured financial products.
Meanwhile, a Nevada court ruling has drawn sharper distinctions between financial trading and gambling—a decision that may complicate sports-based prediction markets while leaving economic event contracts unscathed.
