CFTC Begins Investigating Polymarket, a Test of a Key Regulator

The CFTC begins investigating Polymarket, a key test of whether the regulator will challenge a major prediction-market operator tied to Donald Trump Jr. The Commodity Futures Trading Commission started a fresh probe earlier this year, according to two people familiar with the matter who spoke anonymously. The investigation is understood to be extensive, but few details have been released. Polymarket, based in San Francisco, declined to comment, saying it is committed to accurate, fair and transparent markets. The new action follows a prior CFTC step in 2022, when it collected a $1.4 million fine for operating in the U.S. without a license and banned U.S. customers. That earlier inquiry was later revisited during the Biden administration, alongside a Justice Department criminal probe and an FBI raid in November 2024 targeting founder Shayne Coplan’s devices. This latest probe arrives as CFTC chair Michael S. Selig faces pressure from both parties to police a fast-growing sector that generates billions of dollars in monthly trading.