CFTC Grants Conditional Relief to Polymarket, PredictIt, Gemini and LedgerX

The U.S. Commodity Futures Trading Commission has issued no-action letters to Polymarket, PredictIt, Gemini, and LedgerX, providing conditional relief from specific swap-related recordkeeping and data-reporting rules. This decision allows these platforms to continue operating prediction markets and derivatives services without enforcement actions, provided they adhere to strict compliance standards.

Collateralization remains non-negotiable—every contract must be fully backed at all times, with clearing restricted to the issuing platform. The CFTC's MOVE narrows its enforcement focus while accommodating innovation in prediction markets, reflecting a calibrated approach to oversight in this rapidly evolving sector.

Market operators now operate under clearer expectations, though the relief applies only to defined circumstances. This aligns with earlier regulatory positions for derivatives platforms, signaling measured acceptance of prediction markets within established guardrails.