CFTC investigating whether Polymarket violated its 2022 settlement by inadequately blocking U.S. users and failing to enforce geolocation controls.
Regulation & Gov ·
The CFTC is investigating whether Polymarket breached its 2022 settlement agreement by inadequately preventing U.S. residents from accessing its offshore platform, according to Reuters sources familiar with the inquiry. The probe examines geolocation controls, U.S. advertising practices, and customer onboarding and protection procedures on Polymarket's domestic operations.
The investigation centers on whether Polymarket took sufficient precautions to enforce the restrictions imposed in its prior settlement with the CFTC. Neither Polymarket nor the CFTC has publicly commented on the matter. The regulatory scrutiny follows a pattern: the CFTC and DOJ both closed comparable investigations into the platform in 2025 without bringing charges.
What remains unclear is whether the current investigation will yield enforcement action or resolve similarly without sanctions. The scope and timeline of the probe have not been disclosed. Polymarket's specific compliance gaps—if any are ultimately substantiated—have not been detailed.