Polymarket is the world's largest prediction market with institutional backing. US access is now legal and unrestricted.
🚀 Access Polymarket Now (US Legal)💡 New to crypto? Set up your wallet first →
Complete guide to Polymarket's US regulatory approval, launch timeline, KYC requirements, and how American traders can legally access the platform.
🎉 Historic Milestone: October 2025
Polymarket received CFTC approval to operate as a regulated Designated Contract Market (DCM) — the same regulatory tier as CME and major traditional exchanges.
Expected US launch: Q1–Q2 2026 with self-certified political, sports, and business markets.
Event: CFTC fined Polymarket $1.4 million for operating prediction markets without proper registration. US users blocked.
Impact: Polymarket could only operate globally (non-US). VPNs were workaround (against ToS).
Event: DOJ and CFTC closed investigations into Polymarket. All legal hurdles cleared.
Impact: Path to US operations now open. Confidence spike in crypto market.
Event: Polymarket acquired QCX, a CFTC-licensed derivatives exchange. This gave Polymarket legal DCM status instantly.
Impact: Regulatory path secured. Polymarket became formally regulated exchange.
Event: Intercontinental Exchange (owner of NYSE) invested $2 billion in Polymarket, valuing it at $9 billion.
Impact: Institutional validation. Polymarket data now integrated into Bloomberg Terminals.
Event: Polymarket self-certified first US prediction markets under DCM license. Political, sports, and business categories live.
Impact: US traders can now legally trade on Polymarket (currently email-only registration).
Expected: Q1–Q2 2026 — Full US market launch with potential KYC requirements finalized.
Potential: Massive institutional capital inflow, exponential liquidity increase.
A DCM is the highest regulatory tier for commodity exchanges in the US. Only major exchanges hold this status:
Examples of DCM-Licensed Exchanges:
✅ Benefits
⚠️ Trade-offs
Email registration only — No identity verification currently required to trade US markets.
Why so light? DCM license only self-certifies market structure, not user identity. Full KYC expected when Polymarket upgrades compliance framework.
Tier 1 (Minimal)
Tier 2 (Full KYC)
Likely scenario: Tier 1 for <$5,000 annual volume, Tier 2 for higher traders (similar to Kalshi model).
Polymarket hasn't officially published state restrictions yet. Based on historical DCM/prediction market patterns:
✅ Likely Accessible
CA, TX, FL, NY (via license), IL, PA, OH, NC — Most populous states
⚠️ Uncertain
NV (strict gambling laws), UT (religious conservatism) — May require specific exemptions
❌ Likely Restricted
US territories (PR, VI, GU) — Not covered by CFTC jurisdiction
💡 How to Check
Once Polymarket US fully launches in Q1–Q2 2026, check your state at polymarket.com or enter your ZIP code during registration. Restrictions are enforced at software level (IP blocking + KYC residence verification).
IRS Classification: Prediction market winnings typically treated as capital gains (not gambling income).
Short-term gains (held <1 year): Taxed as ordinary income (up to 37% federal + state taxes)
Long-term gains (held >1 year): Preferential rates (15–20% federal + state taxes)
Once Polymarket implements 1099 reporting (expected 2026):
💡 Tax Planning Tips
Check your state isn't in the restricted list (most states are open). If unsure, try registration — it will block you if restricted.
Visit polymarket.com → Click "Sign Up" → Enter email address. That's it — no KYC currently required.
Install MetaMask or Phantom → Buy USDC on Coinbase → Withdraw to your Polygon wallet. Detailed guide here →
Browse "US" category on Polymarket → Click any market → Trade Yes/No shares. You're live.
| Feature | Polymarket | Kalshi |
|---|---|---|
| Regulation | CFTC DCM (2025) | CFTC DCM (2021) |
| Fees | ~2% | ~7% |
| Deposit Method | USDC (crypto) | USD (bank transfer) |
| Custody | Non-custodial | Custodial |
| Liquidity | Very high ($3B+) | High ($100M+ annually) |
| Market Variety | Broad (politics, crypto, sports, earnings) | Very broad (all categories) |
| Best For | Crypto traders, low-fee seekers | Fiat-first mainstream traders |
Expected outcome: Both will thrive with different user bases. Polymarket = crypto-native liquidity monster. Kalshi = mainstream/traditional financial trader pipeline.
US access is now fully legal: CFTC DCM license eliminates regulatory risk. No VPN workarounds needed.
Email registration today, KYC expected 2026: Lock in access now with minimal ID. Full KYC coming but grandfathering likely for existing users.
Liquidity explosion expected 2026: ICE integration + institutional access = tighter spreads, deeper books for major markets.
Tax planning recommended: 1099 reporting means IRS tracking. Consult a CPA about your trading strategy.
This is historic: First time US prediction markets are legal and regulated. Don't underestimate the significance.
Polymarket is the world's largest prediction market with institutional backing. US access is now legal and unrestricted.
🚀 Access Polymarket Now (US Legal)💡 New to crypto? Set up your wallet first →
Disclaimer: This page reflects regulatory status as of October 2025. US prediction market regulations may change. This is not legal advice. Consult a securities attorney for your specific situation. Prediction market trading carries risk. Only trade amounts you can afford to lose. Not affiliated with Polymarket or CFTC.