Erasing the Traces of Cryptocurrency-Hostile Era in the US: Investigation into Critical Platform Ends

The cryptocurrency world has scored another victory following Donald Trump's return to the White House. Two separate investigations into crypto prediction platform Polymarket, which intensified in the final days of the Biden administration, were closed under Trump. A source familiar with the matter revealed that the US Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC) informed Polymarket earlier this month that their investigations had ended. Polymarket gained significant traction during the 2024 election cycle when users used cryptocurrency to predict political outcomes. However, this popularity sparked investigations into whether the platform was accepting transactions from US users, in violation of a previous agreement with federal regulators. The situation escalated a week after the November 2024 elections. FBI agents raided the luxury New York apartment of Polymarket founder Shayne Coplan before dawn. The 27-year-old CEO, in a statement on social media following the incident, described the move as a last-minute effort by the Biden administration to target companies affiliated with his political rivals and mocked the seizure of his phone. Related News: US President Donald Trump Makes Hot Remarks on Cryptocurrencies - Shares a Long Statement These developments have been welcomed in the crypto community as a sign of the Trump administration's willingness to reverse its crackdown on digital assets. The US Congress is expected to present Trump with the first comprehensive bill this week that includes industry-backed regulations. The CFTC investigation into Polymarket began when the platform fell under the agency's jurisdiction due to its prediction contracts, which resembled futures contracts. In January 2022, the parties agreed to block US users from the platform. However, the investigation continued due to suspicions that these restrictions could have been circumvented through methods such as VPNs. The platform reached approximately $2.6 billion in trading volume in November. The closure of the investigations could pave the way for Polymarket to officially return to the US market, perhaps through registration with the CFTC as a futures exchange or acquisition of a licensed company. Polymarket aims to bring its prediction services to its social media platform by announcing a partnership with Elon Musk's X and artificial intelligence company xAI. It also continues to raise capital with new investment rounds led by Peter Thiel's Founders Fund. *This is not investment advice. Continue Reading: Erasing the Traces of Cryptocurrency-Hostile Era in the US: Investigation into Critical Platform Ends