Polymarket, the crypto prediction market that became a household name during the 2024 US presidential election, is back under the regulatory microscope. Bipartisan senators called on the CFTC to investigate the platform on June 26, 2026, following a Wall Street Journal report alleging that Polymarket paid individuals to create videos depicting fictitious winning bets.
A regulatory history that reads like a rap sheet
Polymarket’s relationship with the CFTC started going sideways back in January 2022. The agency hit the platform, operated by Blockratize, Inc., with a $1.4 million penalty for offering unregistered event-based binary options in violation of the Commodity Exchange Act.
That settlement wasn’t just a fine. It came with strings attached. Polymarket had to wind down non-compliant markets and block US users from accessing the platform entirely.
Both the CFTC and the Department of Justice launched investigations into the platform during the 2024 election cycle. Those probes concluded in July 2025 without any charges being filed.
