Prediction Markets Heat Up as Rivals Race for Compliance
Robinhood’s move is the latest salvo in a fierce industry battle to enter prediction markets under the blessing of federal regulators.
Polymarket—the buzzy prediction market platform that secured up to $2 billion in investment from Intercontinental Exchange, Inc. (ICE) in October—announced Tuesday that the CFTC approved an amended order of designation allowing intermediated trading on its platform.
The approval follows Polymarket’s acquisition of QCEX, a CFTC-licensed derivatives exchange and clearinghouse, earlier in July. The amended order now lets Polymarket work through futures commission merchants after regulators required the firm to bolster surveillance and internal processes.
“With this approval, Polymarket will be able to onboard brokerages and customers directly and facilitate trading on U.S. venues,” the company said.
Polymarket CEO Shayne Coplan wrote on X that the approval essentially enables people to “trade Polymarket through their brokerages,” adding, “This process has historically taken years … it took us 4 months.”
The company did not immediately respond to requests for additional comment Wednesday.
