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A Cryptocurrency Betting Platform for Trump, JLo, & Covid is Under Investigation By the US Government

cryptoknowmics.com 25 October 2021 09:30, UTC
Reading time: ~2 m

It's the platform for betting in cryptocurrency on whether Donald Trump retakes the White House and Jennifer Lopez and Ben Affleck marry. A senior Wall Street regulator is also looking at it.

Cryptocurrency Betting Platform is Under Investigation by the US Government

Polymarket is a New York-based website that has grown in popularity throughout the epidemic as a tool for gamblers to anticipate the results of real-world events including elections, ballgames, and celebrity private lives. 

What's the issue? It may be violating financial regulations in the United States. 

According to persons familiar with the situation, the Commodity Futures Trading Commission is looking into whether Polymarket is allowing consumers to trade swaps or binary options unlawfully and if the company should be registered with the agency.

“Polymarket is firmly committed to complying with applicable laws and regulations and to providing information to regulators that will assist them with any inquiry,” According to a corporate representative. 

About Polymarket

Polymarket, led by 23-year-old entrepreneur Shayne Coplan, is on fire, having processed over 4 billion shares since its inception last year. 

According to two people with knowledge of the situation who requested not to be identified because the negotiations are private, the company has been in talks with investors about a fresh round of investment that could value it at about $1 billion.

As of Friday afternoon, Polymarket offered dozens of wagers, ranging from whether the Treasury Department would manufacture a $1 trillion coin by Nov. 5 to whether artist Nicki Minaj will receive the Covid-19 vaccination by Nov. 29 to Elon Musk's SpaceX reaching outer space by the end of the year.

While the CFTC is most known for supervising banks' derivatives desks and oil traders, it has long struggled with how to oversee event contracts such as those provided by Polymarket. 

In March, cryptocurrency exchange ErisX canceled a plan to provide futures contracts based on National Football League games, products that casinos may have used to hedge their bets, in response to difficult inquiries from the CFTC.

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