Polymarket business expansion and regulatory scrutiny

Polymarket is pursuing a significant valuation increase, reportedly negotiating a $1 billion funding round that could value the company at approximately $21 billion. This follows the company’s efforts to re-enter the United States market through the $112 million acquisition of QCEX in July 2025, which provided a federally licensed derivatives exchange and clearinghouse to ensure compliance with US commodities laws.

As the platform scales, its US exchange recorded approximately $13.6 billion in contract face-value trading between late September and late October 2026. Sports-related contracts accounted for roughly 98% of this volume.

Despite this growth, the company faces ongoing legal and regulatory challenges. The Commodity Futures Trading Commission (CFTC) is reportedly investigating whether Polymarket is adhering to a 2022 settlement regarding US user access. Simultaneously, the New York Attorney General has filed legal action alleging that certain contracts constitute “illegal gambling under state law” and raising concerns regarding protections for underage users. In a related development, the NBA has designated Polymarket as a preferred prediction market exchange.