The CFTC — Commodity Futures Trading Commission — is the US federal agency that regulates derivatives: futures, options, swaps and event contracts. For prediction markets in the US, it's the key regulator.

What is the CFTC?

The Commodity Exchange Act

The CFTC enforces the Commodity Exchange Act.

Designated contract markets

Exchanges that list derivatives for US customers must register — usually as a designated contract market (DCM) — and follow its rules on surveillance, customer protection and contract design.

The CFTC and Polymarket

  • January 2022: the CFTC ordered Blockratize Inc., Polymarket's operator, to pay $1.4 million and wind down non-compliant markets, finding it had offered event-based binary options without registering.
  • 2025: Polymarket acquired a CFTC-licensed exchange, now QCX LLC d/b/a Polymarket US, and received an amended designation in November.
  • 2026: Polymarket US files new contract types with the CFTC, such as CPI contracts (example).

The CFTC vs the states

Federal regulation doesn't end the debate. Several states argue sports event contracts are unlicensed gambling, while the CFTC has argued in court that regulated exchanges fall under federal authority. In late July 2026, 44 state attorneys general disputed the CFTC's authority over sports contracts. See Polymarket legal states.

Next step

In the United States, the regulated route is the Polymarket US app. Read our guides on signing up and depositing to get started, start small and only use money you can afford to lose.