The Commodity Futures Trading Commission has launched an investigation into Polymarket, a prediction market platform with ties to former President Donald Trump.
The probe represents a significant test for the agency’s regulatory authority over online betting platforms.
Last year, the CFTC overruled its own enforcement attorneys and shut down a separate inquiry into whether Polymarket was illegally serving U.S. customers.
That decision raised questions about political influence and regulatory consistency within the agency.
The new investigation now examines whether Polymarket has continued to offer unregistered derivative contracts to American users.
Such contracts allow users to bet on event outcomes, including political elections and policy decisions.
Regulators have previously warned that prediction markets may violate laws designed to protect investors and prevent market manipulation.
The outcome of this investigation could set a precedent for how the CFTC treats similar platforms in the future.
Polymarket has not publicly commented on the current probe.
The case highlights ongoing tensions between innovation in financial technology and existing regulatory frameworks.
