The legal status of Polymarket in the United States has undergone a total transformation over the last 12 months. After years of being blocked for American users following a 2022 settlement with federal regulators, the platform has officially re-entered the U.S. market.
As of late December 2025, the answer to “Is Polymarket legal in the US?” is now a definitive—yet nuanced—Yes.
The 2025 Regulatory Breakthrough
The return of Polymarket to American shores was made possible by a strategic shift from a decentralized protocol to a fully regulated financial institution. This pivot involved several massive legal milestones that have changed the “prediction market” landscape forever.
1. The QCX Acquisition
In July 2025, Polymarket acquired QCX LLC, a CFTC-licensed Designated Contract Market (DCM) and clearinghouse, for $112 million. By acquiring an existing licensed entity, Polymarket inherited the regulatory “plumbing” needed to offer event contracts legally within the United States.
2. CFTC Sign-Off
On November 25, 2025, the Commodity Futures Trading Commission (CFTC) issued an Amended Order of Designation to Polymarket. This order officially permits Polymarket to operate an intermediated trading platform. Unlike the offshore version, the U.S.-regulated version of Polymarket allows users to trade through regulated brokerages and Futures Commission Merchants (FCMs).
3. Institutional Backing from ICE
Further solidifying the legality of Polymarket, the Intercontinental Exchange (ICE)—the parent company of the New York Stock Exchange—invested $2 billion in the company. This partnership designates ICE as the global distributor of Polymarket data, essentially treating Polymarket signals as legitimate financial benchmarks.
State vs. Federal: The “Federal Preemption” Battle
While Polymarket holds a federal green light from the CFTC, the battle has now moved to individual states. This is a classic “tug-of-war” over jurisdiction:
- The Federal Argument: Polymarket and federal regulators argue that because the platform is a CFTC-regulated derivatives exchange, federal law preempts (overrides) state gambling laws.
- The State Argument: States like New York, Illinois, and Massachusetts have filed lawsuits claiming that Polymarket contracts—especially those on sports—are “unlicensed gambling” and should fall under state gaming commissions.
As of today, Polymarket remains accessible to U.S. users, but traders in “contested” states should monitor local litigation that could affect specific contract types.
How the Regulated U.S. App Works
If you are a U.S. resident using the Polymarket app, the experience is legally distinct from the international site:
| Feature | International Polymarket | U.S. Regulated Polymarket |
| Identity Verification | Minimal (Crypto Wallet) | Full KYC (Identity Verification) |
| Funding Methods | USDC/ETH | USD, Bank Transfers, and USDC |
| Regulatory Oversight | Unregulated/Offshore | CFTC-Designated DCM |
| Intermediation | Peer-to-Peer | Intermediated via Brokerages |
The Strategic Outlook for 2026
The legalization of Polymarket is a victory for market-based forecasting. By allowing Americans to legally trade their opinions on the Polymarket exchange, the platform now provides high-fidelity, real-time data for everything from Fed rate cuts to political outcomes.
The transition from a “crypto experiment” to a staple of the American financial landscape is now complete. For the “Polymarket Bro” community, this means the era of VPNs is over—replaced by a world of institutional-grade trading and regulatory clarity.
Summary Timeline of Legalization
- 2022 – CFTC Settlement: Polymarket fined $1.4M; Geofences US users.
- July 2025 – QCX Acquisition: Polymarket buys licensed DCM for $112M.
- Oct 2025 – NYSE/ICE Investment: Parent of NYSE invests $2B in Polymarket.
- Nov 2025 – CFTC Approval: Official “Amended Order of Designation” granted.
- Dec 2025 – US Launch: Regulated US app goes live for all 50 states.
For real-time updates and to start trading on a regulated exchange, visit the official Polymarket homepage.
