The Commodity Futures Trading Commission (CFTC) is closely monitoring offshore crypto betting platforms like Polymarket that offer derivative contracts to U.S. customers, warning of potential enforcement actions for legal violations.
CFTC Chair Rostin Behnam stated on July 17 that the agency is scrutinizing offshore activities to ensure compliance with U.S. laws.
He emphasized that any entity with a significant U.S. presence must register its derivative contracts, or face legal consequences. This enforcement could extend to various financial entities including exchanges and brokers.
Recent months have seen increased scrutiny of blockchain-based prediction markets, particularly as betting on the 2024 presidential election has surged. Polymarket had previously settled with the CFTC in January 2022 for $1.4 million due to unregistered event-based markets.
The CFTC recently faced a setback in a lawsuit against Kalshi, another prediction platform. The court ruled that the CFTC overstepped its authority by demanding Kalshi halt its election markets.
Despite this, Kalshi’s election markets were suspended again on September 12 after an appeals court issued a stay order, following calls from lawmakers for a ban on election betting.
According to Santiment’s latest narrative dashboard, the start of July has seen a surge in online discussions around a wide range of crypto themes, with Solana ETFs, stablecoins, Virtuals, Robinhood, and AI bot projects like Yapyo & Kaito leading the spike in mentions across platforms.
The likelihood of the United States entering a recession in 2025 has dropped significantly, according to the latest market data from prediction platform Polymarket, where recession odds have fallen to just 22%, marking a notable decline from earlier highs in April and May.
A recent poll reveals that over 70% of U.S. crypto investors support President Donald Trump’s current approach to digital asset policy, reflecting growing optimism within the sector.
U.S. President Donald Trump has officially signed his sweeping policy bill into law, enacting one of the most consequential pieces of legislation of his presidency.