The US Regulator provides Polymarket Relief with the contractual contractual reporting rules
The US Commodity Futures Trading Commission (CFTC) said it would not continue the implementation against two creatures tied to the polymarket predictions platform.
In a notice on Wednesday, the CFTC Says It issued a letter with no action “about swap data reporting and recordkeeping regulations for event contracts” with the QCX LLC and QC clearing LLC.
“Divisions do not recommend the CFTC to start an implementation action against either the entity or their participants for failure to comply with certain requirements associated with SWAP recording and for failure to report to replace data repositors associated with binary choice transactions and variable payout transactions contract (…”
The action that essentially allows the polymarket to offer event contracts without reporting the data required under US financial regulations, providing temporary relief from implementation while not liberating companies from compliance with regulation.
In a Wednesday X Post, Polymarket CEO Shayne Coplan Says The CFTC’s action gave the company a “green light to survive in the USA.”
“This process is done in the record,” Coplan said. “Stay tuned.”
Related: Polymarket set for $ 200m increase in $ 1B appreciation: Reports
Polymarket reported The QCEX was taking in July for $ 112 million, which included the CFTC-licensed derivatives exchange and clearinghouse, giving it a larger foothold in US markets.
According to a request for relief without action in July, the QCX said the event contracts in the issue are still “required to be fully collateralized” and “no market participants will eliminate QCEX contracts through a third party clearing member.”
https://www.youtube.com/watch?v=jtzg-Ijdfwc
Regulators have changed their tone
The letter without action seems to be another example of US finance regulators that soften their crypto implementation approach following a change in the Trump administration in January.
In the last eight months, the Securities and Exchange Commission has dropped several investigations and suits to digital asset companies, many of which have been filed under former chairman Gary Gensler.
Donald Trump Jr., son of the President of the United States, Join the Polymarket Advisory Board in August. Brian Quintenz, Trump’s choice of CFTC, is awaiting the Senate, along with acting chair Caroline Pham is the one commissioner left in the regulator until Wednesday.
Polymarket has also been the target of regulatory implementation. In 2022, the CFTC The company was ordered to pay $ 1.4 million for the operation of an “illegal unregistered or non -designated facility.”
The authorities have also been reported Polymarket investigation into trade From US -based users after the 2024 US election, but their trials closed in July.
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