Polymarket Probe Closed by US DOJ and CFTC Amid Regulatory Shift
US authorities have formally closed the DOJ and CFTC investigations into Polymarket, ending the high-profile Polymarket probe that included an FBI raid on CEO Shayne Coplan’s home. The decision aligns with a broader US crypto regulatory shift under the Trump administration, offering traders clarity. Polymarket may now seek CFTC-licensed exchange status or partner with an existing licensee, bolstered by fresh funding from Peter Thiel’s Founders Fund and a forecasting partnership with Elon Musk’s X and xAI. Elsewhere, South Korea’s Seoul court acquitted former Wemade CEO Jang Hyun-guk of WEMIX market manipulation charges, while the Tornado Cash trial of co-founder Roman Storm has begun in New York. These developments mark a turning point for US-based crypto services, potentially boosting market access, liquidity and user confidence.
Bullish
By formally ending the Polymarket probe, US regulators have removed a major legal overhang, fostering a more predictable environment for DeFi and prediction platforms. In the short term, this could trigger increased trading volume on Polymarket and related tokens as traders capitalize on regulatory clarity. Over the long term, the option to pursue CFTC licensing, along with new funding and partnerships, may drive sustained growth in user adoption and market depth. Although the Wemix acquittal and the Tornado Cash trial reflect ongoing legal scrutiny, the dominant takeaway is improved regulatory visibility, which supports a bullish outlook for affected crypto projects.