JPMorgan Ends Banking Ties with Polymarket Amid Regulatory Risks

Polymarket, a prediction market operator, has faced significant regulatory pressure in recent years. In October 2023, JPMorgan Chase ended its banking relationship with Polymarket due to regulatory risks. Despite this, Polymarket continues to work with JPMorgan in other capacities, including potential underwriting interest for a public listing.

The company faces ongoing investigations by the Commodity Futures Trading Commission (CFTC) and has been subject to legal action from over a dozen U.S. states. Regulatory scrutiny around the industry remains intense, with concerns emerging over insider trading allegations and the operation of unlawful sportsbooks.

Despite these challenges, Polymarket continues to grow, with a valuation of $20 billion and plans to raise more than $1 billion in funding. The sector as a whole has seen significant growth, with user-compiled data showing that crypto-based prediction markets have surpassed $250 billion in notional trading volume so far in 2026.