The US Commodity Futures Trading Commission has released the prediction market company PolyMarket’s QCX acquisition from certain disclosure and data requirements as the company proceeds in its US business offers.
QCX, which was granted its license to start operations in July before being snapped later that month by the polymemarket, has received a “no-action letter” from CFTC, allowing it to function in specifically defined ways without drawing enforcement attention. The company was acquired by the polyme field in the hope of its official return to the US business, as it was forced to abandon in 2022 towards the regulator.
The polyming field has since emerged from previous federal investigative interest as the US government has facilitated its tense relationship with this sector, and companies – including Rival Kalshi – have been given several free reins. As a result, the field has begun to explode in visibility and use.
Wednesday’s decision from two relevant departments within CFTC-at staff level and not a commission order- “corresponds to previous positions without actions with regard to reporting certain binary options transactions and similar transactions,” noted the agency. The letter does not relate to explicit prediction markets, but it notes its position on “the registration regulations for event contracts.”
Although he has not been confirmed by the US Senate, President Donald Trump’s nominated to run CFTC, former commissioner Brian Quintenz, close ties to Kalshi as a board member and told lawmakers that the binary event contracts offered to such companies are appropriate “coverage tools.” Even without his arrival, the agency has taken a friendlier attitude in which acting chairman Caroline Pham says CFTC has been spoiled in a “sinking hole with legal uncertainty” as it pursued lawsuit against the industry.
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