DOJ and CFTC Close Probes into Polymarket, Signaling Regulatory Shift for Crypto

US federal authorities have dropped parallel investigations into prediction market platform Polymarket, clearing a path for potential registration. The Justice Department and Commodity Futures Trading Commission (CFTC) issued closure letters earlier this month, ending probes that scrutinized the platform's compliance with US regulations.

Polymarket, which allows stablecoin-based betting on Polygon, previously settled with the CFTC in January 2022 to exclude American users. Investigators later examined whether US customers circumvented restrictions through VPNs, particularly during heightened trading activity around November's election season.

The regulatory resolution comes amid a broader policy reassessment. Capitol Hill's current "Crypto Week" legislative push could see the first comprehensive digital asset bill reach President Trump's desk, marking a potential inflection point for industry oversight.