Polymarket, a decentralized prediction market platform, is reentering the U.S. market after acquiring QCEX, a regulated derivatives exchange, for $112 million, marking a significant move to establish a fully compliant platform.

CEO Shayne Coplan highlighted that this acquisition is crucial for creating a legally compliant environment where Americans can trade and express opinions on various topics.

The acquisition secures a CFTC-regulated exchange and clearinghouse, enabling Polymarket to legally serve U.S. customers and operate within the regulatory framework.

Despite opposition from gambling institutions and sports leagues, supporters believe prediction markets like Polymarket can offer valuable insights into future events.

Polymarket has faced accusations of market manipulation, including wash trading, but maintains investigations have found no evidence of wrongdoing.

The prediction market sector is gaining momentum, exemplified by a court ruling that blocked the CFTC from banning election markets, benefiting competitors like Kalshi.

Polymarket’s collaboration with X as its official prediction platform underscores its growing influence in the prediction market space.

Both Polymarket and Kalshi recently raised substantial funds—Polymarket secured $200 million, and Kalshi raised $185 million—highlighting investor confidence in the sector.

In the first half of 2025, Polymarket processed around $6 billion in transaction volume, indicating strong market activity and interest.

The U.S. Justice Department and CFTC concluded investigations into Polymarket’s past operations, clearing the way for its re-entry into the U.S. market.

While claiming to be the largest prediction market globally, Polymarket’s lack of U.S. access has hindered its valuation compared to competitors like Kalshi, which recently raised $185 million at a $2 billion valuation.

Polymarket’s return follows the dropping of federal probes into its operations, allowing the company to focus on growth and compliance.

In preparation for its U.S. comeback, Polymarket partnered with Elon Musk’s X, becoming its official prediction market partner, which could boost user engagement.