The United States Commodity Futures Trading Commission (CFTC) has started an investigation of decentralized prediction market Polymarket.
The investigation is looking into whether Polymarket is letting its customers trade binary options and swaps that would need to be registered with the financial regulator. All of this hasn’t been confirmed officially yet.
“Polymarket is firmly committed to complying with applicable laws and regulations and to providing information to regulators that will assist them with any inquiry,” declared a spokesperson for the platform.
Polymarket is the host of several novelty predictive markets that let users speculate on the outcome of future events using the USD Coin stable token. Polymarket doesn’t take positions against its customers and is the host of the smart contract interface that lets users interact with the protocol.
It seems the investigation is a result of the fact that Polymarket is planning to secure a new round of funding. Some sources, that decided to remain anonymous, claim that the raise would increase the value of the company to about $1 billion.