DOJ, CFTC Drop Investigations Into Crypto Prediction Platform Polymarket

The U.S. Department of Justice and the Commodity Futures Trading Commission have formally closed investigations into Polymarket, a decentralized prediction platform that gained notoriety during the 2024 election cycle. The probes, initiated under the Biden administration, examined whether the platform violated its 2022 CFTC settlement by allowing U.S. users to access markets through technical workarounds.

Polymarket's rapid growth during the election season—when users wagered cryptocurrency on political outcomes—drew regulatory scrutiny. The resolution coincides with broader efforts to align federal policy with crypto industry interests, as Congress prepares landmark digital asset legislation. The platform's founder faced an FBI raid weeks after the elections, underscoring the tense regulatory environment.