JPMorgan Severed Banking Ties With Polymarket Over Regulatory Risks

The split occurred as Polymarket navigated a complex transition back into the U.S. market. The company, which faced a $1.4 million civil penalty from the Commodity Futures Trading Commission in 2022, has since secured no-action relief and operates its U.S. exchange through QCX. However, the regulatory environment remains volatile; sources indicate the CFTC opened a new investigation into the platform this past June, while New York City officials recently launched an inquiry into the marketing practices of prediction markets.

Despite the account closure, the corporate ties are far from severed. Polymarket CEO Shayne Coplan attended a private JPMorgan conference in Miami this February, and the bank continues to manage other operational integrations and customer fund flows for the platform. This dynamic highlights a broader trend identified by the Office of the Comptroller of the Currency, which found that major national banks often subject specific lawful industries to escalated reviews. Meanwhile, Polymarket is reportedly courting investors for a $1 billion funding round that could push its valuation north of $20 billion, signaling significant market appetite even as legal challenges persist.