CFTC Warns Polymarket and Other Offshore Crypto Betting Platforms of Enforcement Actions
Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...
The U.S. Commodity Futures Trading Commission (CFTC) has warned Polymarket and other offshore crypto betting platforms about enforcement actions if they continue to offer unregistered derivatives contracts to U.S. customers.
Speaking at a Georgetown Psaros Center event on Tuesday, CFTC Chair Rostin Behnam said the agency monitors offshore activity.
“We are observing any activity that’s occurring offshore and is providing exposure to U.S. customers, and we want to make sure it is done legally and within the bounds of the law,” he said.
Behnam further clarified that if a platform’s operations have a substantial presence in the U.S. and do not comply with registration requirements, the CFTC will take action.
“If anyone, Polymarket or otherwise, conducts themselves in a way that breaks the law, we will use our civil enforcement authority to make sure that conduct stops,” Behnam added.
The crackdown may target various entities, including exchanges, clearinghouses, and brokers.
Blockchain-based prediction markets, which have gained popularity with the approach of the 2024 presidential election, have been under intense scrutiny in recent months.
Polymarket had previously settled with the CFTC for $1.4 million in January 2022, after being accused of offering more than 900 event-based binary options markets without registering them.
However, the CFTC faced a legal setback in its recent lawsuit against Kalshi, a blockchain prediction platform.
A court ruled that the CFTC had overstepped its statutory authority by attempting to halt Kalshi’s
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