“Just need US approval”...Polymarket declares direct breakthrough into Wall Street

▲ Prediction Market/AI Generated Image

Polymarket, the world's largest prediction market platform, is accelerating its entry into the institutional financial market by pursuing registration with the U.S. Commodity Futures Trading Commission (CFTC). There are observations that if it overcomes regulatory hurdles, it could shake up the market.

Cointelegraph reported on April 28 (local time) that Polymarket is considering securing the status of a Designated Contract Market (DCM) in the United States. Rostin Behnam, Chairman of the CFTC, emphasized that official registration is essential to provide services to U.S. users. Polymarket has restricted access for U.S. residents, but has been under constant scrutiny from regulatory authorities due to issues of circumventing access.

Chairman Behnam pointed out that prediction markets essentially have a structure similar to futures trading. He judged that operating outside of regulation could increase the risk of market manipulation and gaps in consumer protection. However, he stated that legitimate operation is possible if regulatory requirements are met. The atmosphere suggests that regulatory authorities are actively moving to manage prediction markets as financial products rather than mere gambling.

Polymarket's growth rate is steep. In the first quarter of 2026, its trading volume surpassed $10 billion, a sharp increase from the previous year. Hundreds of millions of dollars flowed into prediction markets related to Donald Trump's U.S. presidential election alone, attracting intense interest from global investors. The volume of open interest has also expanded to an all-time high, rapidly increasing its market influence. Prediction products related to major virtual assets such as Bitcoin and XRP are also recording high trading volumes.

The virtual asset industry is paying close attention to whether Polymarket's attempt to enter the institutional framework will lead to the legalization of prediction markets as a whole. Amid ongoing legislative discussions, such as the U.S. crypto market structure bill, this move could be a watershed moment for establishing a regulatory framework. The issue of fairness with Kalshi, an existing registered exchange, is also emerging as a major point of contention. Polymarket is expanding collaborations with data analysis firms such as Santiment to enhance transparency.

Polymarket has completed its technical and legal preparations for regulatory compliance. If it secures official exchange status, institutional capital inflow is expected to accelerate, leading to a rapid expansion of market size. The outcome of negotiations with regulatory authorities is anticipated to become clear within the next few months.

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