BUSINESS

United States prediction market Polymarket battles for legitimacy

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United States-based prediction market platform Polymarket is mounting a large-scale return to the country after a four-year absence, according to a recent report. The company quietly re-entered the US in late 2025 by acquiring a licensed derivatives exchange, in a move designed to demonstrate that it now operates within American regulatory frameworks. It is running a heavily funded campaign to distance itself from its previous image as a wild offshore operator and is recruiting former officials from the FBI, the US Department of Justice, and major Wall Street institutions to strengthen oversight, compliance and internal controls as it builds a fully onshore operation. United States regulators and industry observers are watching Polymarket’s efforts as it attempts to regain public trust and compete in a prediction market sector that has expanded into a roughly $26.6 billion industry, currently led by well-funded rival Kalshi. Polymarket’s high-profile comeback bid is unfolding amid controversy, including allegations of deceptive viral marketing practices, undisclosed payments to political influencers and concerns about potential insider trading linked to a US-Iran ceasefire market. With millions of dollars invested and its reputation under intense scrutiny, the company faces significant pressure to prove that its revamped business model meets regulatory expectations and market integrity standards.

Prepared by Christopher Adams and reviewed by editorial team.

Timeline of Events

Four years ago Polymarket exits US market
Late 2025 Polymarket buys licensed exchange
Late 2025 Company re‑enters United States operations
Recently Polymarket launches major trust campaign
Recently Firm recruits ex‑FBI and DOJ officials
Recently Industry valuation reaches $26.6 billion
Recently Rival Kalshi dominates US prediction markets
Recently Allegations arise over influencers and marketing

Why This Matters to You

Polymarket's return could shake up the $26.6 billion prediction market. As a consumer, you might see new investment opportunities. But remember, these markets are risky. Keep an eye on how regulators respond to Polymarket's comeback.

The Bottom Line

Polymarket is trying to clean up its act, but it's not without controversy. It's crucial to research before investing in prediction markets. If you know someone interested in this sector, it's worth forwarding this update.