Polymarket faces renewed CFTC scrutiny over 2022 settlement compliance

Regulators are currently auditing the platform's location controls, advertising practices, and user onboarding processes. This inquiry, part of a broader investigation opened earlier this year, specifically targets how the New York-based firm manages its offshore entity, which remains separate from its regulated American business. While federal authorities closed previous probes into the company without charges in 2025, this latest review suggests officials are not yet satisfied with the wall between the platform’s international operations and the U.S. market.

Polymarket maintains that its current systems—which integrate blockchain analytics and machine learning—are sufficient to prevent the vast majority of American access. Shana Bautista, the company's global head of investigations, recently asserted that evasion of these restrictions is not a prevalent issue. However, the scrutiny persists as lawmakers, including Senators Adam Schiff and John Curtis, continue to press the CFTC for greater transparency regarding age verification and consumer safeguards. Meanwhile, the company is navigating a separate inquiry from the New York City Council, which is investigating how event-contract products are marketed to local consumers.