Polymarket, Once Expelled from the US Market, Will It Win Back Regulators?

▲ Polymarket, Lawsuit/ChatGPT generated image ©

Polymarket, the world's largest prediction market aiming to re-enter the US market, has taken a decisive step to cut off illegal transactions. Partnering with Chainalysis, a leader in blockchain data analytics, it has fully adopted a powerful on-chain monitoring system to real-time supervise insider trading and market manipulation, embarking on a path to restore trust with regulatory authorities.

According to investment media FXStreet on April 30 (local time), Polymarket has entered into a partnership to integrate Chainalysis's data infrastructure and investigative tools to strictly enforce market integrity rules on its platform. This collaboration focuses on detecting and blocking various market manipulation activities, such as unfair transactions using inside information and fraud, on the platform.

All of Polymarket's transactions, positions, and settlement details are recorded on a public ledger, operating in a completely on-chain form. Based on this structural transparency, a detection model powered by Chainalysis Data Solutions is activated, identifying abnormal trading patterns suspected of utilizing non-public information in real-time. Shayne Coplan, Polymarket CEO, emphasized that this partnership will provide a robust surveillance and enforcement infrastructure to support market transparency.

The collaboration between the two companies extends beyond mere monitoring, encompassing Chainalysis's diverse product suite, including investigative tools for blockchain-based evidence collection, security features for threat prevention, and professional services. This system is expected to continuously evolve by learning new data and emerging threat patterns, and Polymarket has stated its goal to set new global standards for trust and accountability in on-chain financial markets through this initiative.

This move is interpreted as a key strategy emerging from Polymarket's efforts to seek a legitimate re-entry into the US market after withdrawing from it in 2022 following an agreement with the US Commodity Futures Trading Commission (CFTC). Polymarket, which has changed its course to strictly comply with regulatory authorities, has continued its steps toward institutional integration.

As part of this, Polymarket fully acquired QCEX, the parent company of QCX, a CFTC-licensed derivatives exchange, for $112 million in 2025. This secured a Designated Contract Market (DCM) license and clearing infrastructure, paving a shortcut for operation within the regulatory framework. Polymarket is currently engaged in active discussions with authorities to lift access restrictions for US users and is considering integrating its on-chain exchange within the regulatory framework of a US-licensed entity.

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