Federal Prosecutors Close Inquiry Into Polymarket Betting Website

Federal prosecutors have closed their inquiry into Polymarket, a cryptocurrency-based betting website. Polymarket gained prominence in 2021 when it allowed users to place bets on the outcome of the 2024 U.S. presidential election. The U.S. Commodity Futures Trading Commission (CFTC) had previously investigated Polymarket for potentially offering illegal off-exchange binary options and swaps. However, the federal prosecutors have now decided not to pursue any further action against the company. Polymarket, which is based in the Cayman Islands, allows users to bet on a range of topics, including political events, financial markets, and COVID-19 developments. The website's closure of the inquiry is seen as a relief for the company, which had faced potential legal consequences. The decision by federal prosecutors highlights the ongoing regulatory challenges faced by the rapidly evolving cryptocurrency and decentralized finance (DeFi) sectors. As these technologies continue to expand, policymakers and regulators are grappling with how to effectively oversee and govern such platforms.