U.S. Authorities Conclude Polymarket Investigations, Signaling Shift in Crypto Oversight

U.S. prosecutors and the Commodity Futures Trading Commission have dropped their investigations into Polymarket, a prediction markets platform. The Department of Justice and CFTC recently notified the company that their inquiries were closed, according to a source familiar with the matter.

The DOJ had been examining Polymarket last year for allegedly failing to block U.S. users from placing bets on its platform. CoinDesk confirmed at least two U.S.-based individuals were able to participate during the investigation period. Polymarket previously characterized an FBI raid on its founder's home as "obvious political retribution," though provided no substantiation for the claim.

This development coincides with a broader relaxation of digital asset enforcement under the TRUMP administration. The CFTC recently abandoned efforts to block rival platform Kalshi, while the SEC has terminated over a dozen crypto-related investigations and lawsuits. Banking regulators have similarly reduced scrutiny of crypto-focused financial services firms.