The U.S. Commodity Futures Trading Commission (CFTC) has granted exemption from enforcement action against two entities associated with the prediction market platform Polymarket. This exemption is interpreted as effectively waiving some reporting requirements without completely exempting them from traditional financial regulations.
The CFTC announced in an official statement on the 26th (local time) that it had issued a "No-Action Letter" to QCX LLC and QC Clearing LLC regarding "Regarding the Swap Data Reporting and Recordkeeping Rules Related to Event Contracts." This means that the CFTC will not recommend enforcement action against the two companies or their respective participants, even if they failed to meet swap-related recordkeeping requirements or failed to report transaction data related to binary options and variable payment contracts to the Swap Data Repository.
Meanwhile, this announcement is expected to be a significant milestone for Polymarket as it expands its presence in the regulated US market. In July, Polymarket announced the acquisition of QCEX, a CFTC-licensed derivatives exchange and clearinghouse, for $112 million (approximately KRW 155.8 billion). This no-action letter is interpreted as an initial step to support the regulatory compliance process following the acquisition.
However, the CFTC clarified that this decision does not grant regulatory exemption. The key point is that both companies remain subject to basic regulatory compliance obligations, and the no-action letter merely serves as a temporary stay of enforcement. This suggests that Polymarket is pursuing a proactive regulatory overhaul strategy as it seeks to formally expand its services in the United States.
Polymarket offers event-based contracts across a wide range of fields, including national issues, sports events, politics, and economic forecasts. It recently attracted attention by creating a market predicting President Trump's re-election chances. This move is expected to serve as a touchstone for assessing how these event-based cryptocurrency derivatives can coexist with existing financial regulations.
Get real-time news... Go to TokenPost Telegram
Copyright ยฉ TokenPost. Unauthorized reproduction and redistribution prohibited.
