CFTC Eases Regulatory Burden on Crypto Event Contracts, Clearing Path for Polymarket

The Commodity Futures Trading Commission (CFTC) has adopted a more permissive stance toward cryptocurrency event contracts, marking a significant shift from its previous enforcement-heavy approach. The regulator's Divisions of Market Oversight and Clearing and Risk will no longer enforce swap data reporting and recordkeeping requirements for such contracts, following requests from QCX LLC and QC Clearing LLC.

This regulatory pivot removes major operational hurdles for prediction market platforms like Polymarket, which previously faced CFTC litigation. Founder Shayne Coplan confirmed the platform's approval to operate in the US market shortly after the announcement. The decision reflects growing institutional recognition of crypto-native financial products despite earlier conflicts.