JPMorgan Chase ended its banking relationship with Polymarket in October 2025, requiring the prediction market operator to find another lender amid regulatory concerns, according to a report published Friday and a separate Reuters account citing a person familiar with the matter.
The decision places a major U.S. bank at the center of the regulatory uncertainty surrounding prediction-market companies, whose event-based contracts have drawn scrutiny from federal agencies, state regulators and gambling authorities. Polymarket has since moved its banking accounts to an unidentified lender, the reports said.
JPMorgan is also seeking a potential underwriting role should Polymarket pursue an initial public offering, according to the report. That creates an unusual split between the bank’s compliance posture toward Polymarket’s operating accounts and its interest in a possible role in the company’s capital-markets plans.
Polymarket has been discussing a fundraising round of roughly $1 billion at a valuation above $20 billion, Reuters reported on Aug. 4. Intercontinental Exchange, the owner of the New York Stock Exchange, agreed in October 2025 to invest up to $2 billion in Polymarket, valuing the company at $9 billion at that point, Reuters reported.
Banking exit followed Polymarket’s U.S. restructuring
JPMorgan’s decision came after Polymarket spent several years rebuilding its route into the U.S. market.
The company’s original platform stopped serving U.S. customers following a 2022 settlement with the Commodity Futures Trading Commission. Under that agreement, Polymarket paid a $1.4 million civil penalty and agreed to wind down event contracts that did not comply with U.S. derivatives rules.
Polymarket later returned through Polymarket US after acquiring QCX LLC and QC Clearing LLC for $112 million. The CFTC designated QCX as a contract market in July 2025, allowing it to list regulated event contracts. The agency amended the designation in November 2025 to permit intermediated trading, which can allow customers to trade through registered brokers or other intermediaries rather than directly on the venue.
That regulatory structure gives Polymarket a U.S.-registered pathway that differs from its earlier offshore-oriented model. Yet the company remains subject to scrutiny. The report said the CFTC has an ongoing investigation involving Polymarket. A CFTC spokesperson said in June that the agency could neither confirm nor deny whether an investigation existed.
The banking action therefore appears to reflect the practical effect of compliance risk beyond a platform’s formal registrations. A company can obtain a regulated entity, pursue licensed U.S. operations and attract prominent corporate backers while still facing caution from financial institutions responsible for anti-money-laundering controls, sanctions screening and regulatory reporting.
JPMorgan maintained contacts with Polymarket executives
The account closure did not end all contact between JPMorgan and Polymarket. Shayne Coplan, Polymarket’s chief executive, appeared alongside former NFL quarterback Tom Brady at a JPMorgan private-banking client conference in Miami in February, according to the report.
Jamie Dimon, JPMorgan’s chief executive, has publicly described the risks banks see when serving crypto-linked businesses. Speaking on a podcast in January 2025, Dimon said banks have limits on what they can disclose when ending client relationships and can face “millions of dollars in fines” if a crypto client fails.
Those comments came as “debanking” became a political issue in Washington. The term generally refers to a bank restricting or ending services for a customer, often because of perceived legal, compliance or reputational risks.
President Donald Trump signed an executive order in August 2025 directing federal regulators to investigate claims of debanking and impose fines where warranted. Polymarket’s experience gives that debate a high-profile example involving a company operating at the intersection of cryptocurrency, derivatives and online wagering.
Prediction markets face mounting state challenges
The banking episode arrives during an escalation in legal disputes over whether prediction-market contracts should be treated as federally regulated derivatives or as forms of gambling subject to state law.
Baltimore sued both Kalshi and Polymarket on Thursday over sports-related contracts. The same day, a Washington state court ordered Kalshi to halt most of its offerings in the state.
New York City Council members opened an inquiry Wednesday into marketing practices involving Polymarket, Kalshi, Coinbase and Gemini Titan. The inquiry extends the focus beyond contract design and market regulation to how platforms promote speculative products to consumers.
The CFTC has taken the opposite position from several states in litigation involving Kalshi, asserting that federally regulated event contracts fall under the agency’s jurisdiction. The regulator has used emergency authority to allow Kalshi to continue operating in New York and has sued several states over their attempts to restrict the platform’s contracts.
That conflict leaves prediction-market operators navigating multiple layers of oversight. Federal registration may support an operator’s argument that it is offering derivatives under CFTC rules, but it does not prevent state officials and courts from challenging sports-related or election-related products under local gambling, consumer-protection or licensing laws.
Competition is growing as regulation tightens
Polymarket’s rivalry with Kalshi has intensified as both platforms pursue greater U.S. scale. Publicly cited trading data showed Polymarket and Polymarket US recording a combined $12.9 billion in July, while Kalshi recorded $40 billion during the month.
High activity has made the platforms increasingly relevant to traders using contracts to express views on sports, elections, economic data and other real-world events. It has also increased the stakes for banks, payment providers and brokers that connect those platforms to the conventional financial system.
Coplan’s role on the CFTC’s Innovation Advisory Committee underscores Polymarket’s growing presence in policy discussions. The committee is scheduled to hold its first meeting on Thursday, Aug. 20. Trump is expected to meet crypto and prediction-market executives at the White House the day before.
For Polymarket, securing replacement banking services resolves an immediate operational need. The broader question is whether the company’s U.S. regulatory structure and expanding institutional ties can insulate it from the compliance caution that prompted JPMorgan to exit the relationship in the first place.
Curious how regulation reshapes crypto and prediction markets? Explore future scenarios in this in-depth outlook for traders.
Disclaimer: The content on this page is provided for general informational purposes only and does not represent the views or financial advice of Toobit. We make no guarantees regarding the accuracy or completeness of this information and shall not be held liable for any errors, omissions, or outcomes resulting from its use. Investing in digital assets involves risk; users should independently evaluate their financial situation and the risks involved. For further details, please consult our Terms of Service and Risk Disclosure.
