- Congress set to pass major crypto law, solidifying Trump administration’s shift toward pro-industry digital asset policies.
- The policy reversal marks a significant win for crypto advocates who have long criticized aggressive federal oversight of the sector.
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Federal authorities have formally ended investigations into crypto-based prediction market Polymarket, signaling a broader shift in U.S. regulatory posture as the Trump administration embraces digital assets.
Quoting sources familiar with the matter, Bloomberg reported on Tuesday that both the U.S. Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC) notified Polymarket this month that their inquiries had concluded.
The probes, initiated under the Biden administration, intensified following the 2024 elections amid concerns over the platform's potential violations related to servicing U.S.-based users.
Polymarket, which allows users to place bets on real-world events using cryptocurrency, saw a significant uptick in activity during last year's election cycle.
However, its surge in popularity attracted renewed scrutiny, particularly over whether it had breached the terms of a previous settlement with regulators.
Also Read: ‘I Told You So’: Maxine Waters Predicts Massive Fraud If Crypto Bills Pass
The federal attention peaked shortly after the 2024 election when FBI agents raided the residence of Polymarket CEO Shayne Coplan in Manhattan's Soho neighborhood.
Coplan later criticized the move on social media, characterizing it as a politically motivated effort tied to his opposition to Biden-era policies.
He also mocked the seizure of his mobile phone during the operation.
The closing of these investigations reflects a broader realignment in Washington.
As Trump's administration pushes for more crypto-friendly legislation, Congress is expected to pass a major bill this week that would formalize regulatory guidelines for parts of the digital asset sector.
Market participants see this as part of a larger shift away from the enforcement-heavy stance seen during the Biden years.
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