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How Polymarket plans to win back America’s trust after 4 years in exile
After four years in exile, prediction market platform Polymarket is launching a significant campaign to re-establish itself in the American market. The company seeks to convince policymakers, regulators, and the public that its new U.S. operation is more disciplined than its offshore predecessor. Polymarket is employing social media influencers, partnerships with sports teams and news organizations, and active online engagement to promote its real-time markets as superior to traditional polling. Americans were previously unable to access Polymarket legally after it settled federal charges in 2022 for operating an unregistered derivatives market. The offshore exchange faced criticism for allegations of insider trading and allowing wagers on violent events. Polymarket re-entered the U.S. by acquiring the derivatives exchange QCEX, securing the necessary regulatory license. Executives emphasize that the U.S. exchange is segregated from the international platform and has hired extensive compliance and regulatory staff. The company aims to build trust as its core product, with new hires from major financial firms and law enforcement backgrounds. Polymarket U.S. operates through a centralized structure regulated by the CFTC, using U.S. dollars, unlike its blockchain-based, cryptocurrency-dependent international counterpart. While customers may not notice a difference in service, Polymarket U.S. will offer fewer contracts and adhere to stricter regulations. The prediction market industry has grown substantially since Polymarket's departure, with significant trading volume shared between Polymarket and competitor Kalshi. The industry also benefits from a more favorable regulatory environment in Washington. Despite this, Polymarket's reintroduction has faced challenges, including reports of deceptive marketing strategies and undisclosed influencer partnerships. The company states it is investigating these promotional campaigns to determine if they can successfully differentiate the U.S. operation from its controversial international platform.