CFTC Focuses on Offshore Crypto Platforms Like Polymarket, Threatens Enforcement Actions
The U.S. Commodity Futures Trading Commission (CFTC) said it is closely monitoring the behavior of offshore crypto betting platforms such as Polymarket that offer derivatives contracts to U.S. customers, threatening enforcement action against violators, Cointelegraph reported.
CFTC Chairman Rostin Behnam said in a July 17 discussion that any entity with a significant presence in the U.S. and unregistered derivatives contracts would face enforcement action.
Behnam mentioned that Polymarket reached a $1.4 million settlement with the CFTC in January 2022 for failing to register more than 900 event-based binary options markets.
However, the CFTC recently lost a partial lawsuit against blockchain prediction platform Kalshi, where the court ruled that the CFTC exceeded its statutory authority and demanded the suspension of its election markets.
Nonetheless, Kalshi's election market was suspended again on September 12 until further notice.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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