The prediction market platform Polymarket has initiated an extensive campaign aimed at restoring trust and redefining its business approach following a four-year absence from the U.S. market. This effort is part of its strategy to clearly differentiate its regulated domestic exchange from its international operations.
Polymarket is focused on persuading regulators, policymakers, and consumers that its U.S. operations adhere to a more stringent compliance framework compared to its international counterpart, which has faced criticism for its operational practices and market offerings, according to the Associated Press.
To enhance its visibility, Polymarket has forged partnerships with Major League Baseball, various prominent sports teams, and media outlets such as CNBC and CNN. Additionally, the company is boosting its engagement on social media platforms like TikTok and X.
After acquiring the derivatives exchange QCEX, Polymarket re-entered the U.S. market at the end of 2025, securing the necessary regulatory license for domestic operations. Its U.S. platform is overseen by the Commodity Futures Trading Commission (CFTC), utilizes U.S. dollars instead of cryptocurrencies, and provides a more limited selection of contracts under stricter regulatory scrutiny than its international platform.
The company has also strengthened its compliance team by hiring professionals from Coinbase, Robinhood, the U.S. Department of Justice, and the FBI. Notable appointments include Dan Lee from Coinbase as the head of U.S. operations, Megan McGrath as chief compliance officer, and Natalie Oblazny, both previously with Coinbase and Robinhood, along with former officials from the Justice Department and FBI in enforcement and surveillance roles.
Experts in the industry assert that the domestic platform operates under a significantly different regulatory framework compared to the international business. Todd Phillips from the Roosevelt Institute remarked, "Polymarket U.S. is expected to comply with U.S. laws and regulations, while Polymarket International operates with fewer restrictions."
Polymarket's return coincides with a surge in the popularity of prediction markets. The combined trading volume for Polymarket and its competitor Kalshi has escalated to $26.6 billion from $9.75 billion in October of the previous year, with Kalshi representing about two-thirds of this activity. Kalshi has recently been valued at $22 billion.
The sector has also benefited from a more favorable regulatory climate during the Trump administration, with Donald Trump Jr. being an investor in Polymarket through the venture capital firm 1789 Capital.
However, the company's rebranding efforts have encountered challenges. The Wall Street Journal reported that some influencer marketing campaigns allegedly showcased simulated profitable trades as authentic. Additionally, Politico revealed that a Polymarket executive compensated at least 20 political content creators, many of whom did not disclose their partnerships.
In light of these reports, Polymarket announced it is reviewing its marketing and promotional strategies.
The international platform continues to face scrutiny, including trading linked to the capture of Venezuelan President Nicolás Maduro and concerns regarding potential insider trading prior to U.S. President Donald Trump's announcement of a ceasefire with Iran.
Lee noted that such incidents have overshadowed the advancements made by the regulated U.S. platform. "The dominance of the international business in trading volume often obscures the progress we are achieving in the U.S. to enhance Polymarket's acceptance," he stated.