JPMorgan Cuts Ties with Polymarket Amid Ongoing Regulatory Scrutiny

JPMorgan Chase quietly severed its banking ties with Polymarket in October 2025 due to lingering regulatory concerns, according to a Financial Times report. The Commodity Futures Trading Commission had fined Polymarket $1.4 million in 2022 for operating an unregistered derivatives exchange, forcing the platform to bar US customers from its site for three years.

The CFTC later granted Polymarket a path back into the American market by issuing a no-action letter in September covering QCX and QC Clearing, which Polymarket acquired for $112 million. However, the regulator still has an open investigation into the company, underscoring that scrutiny of Polymarket hasn't fully lifted.

JPMorgan's decision reflects a broader hesitancy among major banks toward platforms like Polymarket that blur the line between prediction markets and sports betting, particularly those built on crypto-based infrastructure. Regulatory ambiguity around event contracts has apparently outweighed the relationship for JPMorgan at the time.