Prediction Markets Get Green Light: CFTC's December 2025 No-Action Relief

Big news for the derivatives space—the U.S. Commodity Futures Trading Commission just signaled a major policy shift. On December 11, 2025, CFTC issued no-action relief letters to four major prediction market platforms, including Polymarket, effectively clearing the way for these services to operate without immediate regulatory crackdowns.

What does this mean? Essentially, these platforms now have breathing room to continue operating. No-action letters are the CFTC's way of saying: "We won't pursue enforcement against you—for now." It's not a full green light, but it's the closest thing crypto derivatives have gotten to official blessing from U.S. regulators in this space.

This move matters because prediction markets have been in regulatory limbo for years. By issuing these letters, CFTC is acknowledging that prediction markets serve a legitimate economic function—whether for risk management, price discovery, or hedging purposes. The timing is significant too, signaling a potential shift toward more pragmatic crypto regulation as the industry matures.

For traders and platforms, this is a validation moment. The crypto derivatives ecosystem just got a clearer path forward.