JPMorgan Chase Ditches Polymarket Over Regulatory Worries

JPMorgan Chase cut ties with Polymarket in October last year due to regulatory concerns. The investment bank had provided banking services to the prediction market operator but decided to stop after it was served a US$1.4 million fine by the Commodity Futures and Trading Commission (CFTC) in 2022.

The CFTC penalized Polymarket for operating an unregistered derivatives exchange. However, with the relaxation of federal measures regarding prediction markets late last year, Polymarket was able to return to the market.

JPMorgan Chase still maintains close contact with Polymarket and even invited its CEO to address a private client conference earlier this year, despite having ceased banking services.