DOJ Ends Polymarket Investigation as Crypto Industry Gains Regulatory Momentum

• The DOJ and CFTC have officially ended their investigation into Polymarket and cleared the platform of wrongdoing.

• Polymarket gained attention during the 2024 election for accurate predictions but faced FBI raids and regulatory scrutiny.

• The investigation’s end helps Polymarket’s $200 million fundraising effort and signals crypto-friendly regulatory changes under Trump.

The U.S. Department of Justice and the Commodity Futures Trading Commission have officially concluded their investigation into crypto prediction platform Polymarket. The regulatory probe closure marks another significant victory for the digital asset sector under the Trump administration.

Bloomberg reports that both agencies sent formal notices to Polymarket, confirming the end of investigations that began during the previous Biden administration. The platform cooperated fully with regulators throughout the process and has been cleared of any wrongdoing.

Election Prediction Platform Draws Regulatory Scrutiny

Polymarket gained massive attention during the 2024 presidential election cycle. Users leveraged the platform’s prediction markets to gauge potential election outcomes. The surge in popularity prompted regulators to examine whether the platform accepted trades from U.S. customers.

The investigation intensified following election night when Polymarket accurately predicted Trump’s victory. Eight days after the election, FBI agents raided CEO Shayne Coplan’s residence, seizing computers and phones. Coplan described the experience as traumatic but emphasized that it highlighted the platform’s accuracy.

The timing of the investigation’s conclusion benefits Polymarket’s fundraising efforts. The company is currently seeking $200 million in funding at a $1 billion valuation. Regulatory clarity removes a significant obstacle for potential investors.

Crypto Regulatory Environment Shifts Under the Trump Administration

The crypto industry has experienced a notable regulatory turnaround since Trump took office in January 2025. Multiple investigations and legal battles against crypto firms have been dropped or concluded favorably. This trend reflects the administration’s more accommodating stance toward digital assets.

Congress is expected to advance crypto-friendly legislation in the coming weeks. The GENIUS Act and CLARITY Act could provide an additional regulatory framework for the industry. The House may move forward with these bills by July 17.

Coplan acknowledged the investigation’s conclusion on the social media platform X. He confirmed that this chapter has ended after months of cooperation with federal agencies. The CEO noted that the ordeal has become part of American political history, cementing both the platform’s accuracy and the resistance it faced.

The investigation’s end removes regulatory uncertainty for Polymarket and signals broader acceptance of prediction markets in the crypto ecosystem. Other cryptocurrency companies are likely monitoring this development as an indicator of the current regulatory climate.