U.S. Department of Justice Ends Probe into Crypto Betting Platform, Polymarket
After facing scrutiny from U.S. regulatory bodies since last year, Polymarket clears investigations, setting the stage for a return to the U.S. market amid surging user growth on the platform.
The U.S. Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC) have officially concluded their investigations into Polymarket. Bloomberg reported the news on Tuesday, citing an unnamed source familiar with the event.
Polymarket is a decentralized cryptocurrency prediction market platform that enables users to stake tokens on the outcome of current events, including elections, sports, and other significant events. The platform gained massive popularity during last year’s U.S. election campaigns as users flocked to the platform to place crypto wagers on who they thought would win the election.
Investigations into Polymarket Sparked by U.S. Election Activity
Polymarket came under intense scrutiny following the 2024 U.S. presidential elections, when a surge in user activity raised questions about compliance with U.S. trading laws. Users placed high bets on political outcomes, prompting U.S. regulators to investigate whether the platform was unlawfully targeting American traders.
Before that, Polymarket had previously reached a $1.4 million settlement with the CFTC in 2022, agreeing to block U.S. users from accessing its services. However, the uptick in activity from U.S. users during the election reignited concerns. In November 2024, the FBI carried out a search warrant at the home of Polymarket CEO Shayne Coplan, seizing his electronic devices as part of the investigation and sparking controversy.
Notably, with both the DOJ and CFTC concluding the probe, Polymarket is now set to re-establish its regulatory footing in the U.S. The decision comes at a critical moment, as Congress prepares to pass the first comprehensive legislation governing digital assets. That legislation could open a pathway for platforms like Polymarket to operate legally in the U.S. through official CFTC registration or the acquisition of a licensed entity.
Despite its legal hurdles, Polymarket has seen rapid growth in user engagement and monthly volume this year. In June 2025, the platform achieved a monthly volume of $1.16 billion, its highest since January.
By offering markets that allow users to wager large sums on the outcomes of real-world events, the platform has differentiated itself as a unique alternative to traditional betting systems. Neither Coplan nor Polymarket has publicly responded to the latest developments.
