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Polymarket Loses Bank Amid Regulatory Storm
17 Aug
Summary
- J.P. Morgan Chase severed ties with Polymarket in October 2025.
- Regulatory concerns cited as the reason for the banking relationship termination.
- Polymarket faces scrutiny over classifying operations as illegal sports betting.
J.P. Morgan Chase terminated its banking relationship with prediction-market operator Polymarket in October 2025, citing regulatory concerns. This significant development prompted Polymarket to find a new banking institution to support its operations.
The move by J.P. Morgan comes as Polymarket navigates considerable regulatory scrutiny. The company has faced enforcement actions from the Commodity Futures Trading Commission (CFTC) and legal challenges from state authorities. These actions have attempted to classify Polymarket's operations as illegal sports betting.
Losing a major banking partner and facing ongoing regulatory uncertainty may pose challenges for Polymarket's ambitious goals. The company has been seeking to raise $1 billion at a $20 billion valuation and is pursuing an initial public offering (IPO).
Despite these risks and legal challenges, the broader prediction market industry continues to attract users and capital. The sector has seen over $250 billion in notional trading volume, drawing interest even from large financial institutions.
