• Donald Trump Jr joins Polymarket board after 1789 Capital invests in the growing crypto prediction platform.
• Polymarket aims for legal return to the US after buying regulated exchanges and closing federal investigations.
• US lawmakers and sports leagues raise concerns over election and sports betting on crypto prediction platforms.

Donald Trump Jr. has joined the advisory board of Polymarket, a fast-growing crypto prediction platform. This move follows a strategic investment from 1789 Capital, a venture firm where Trump Jr. is a partner. 

The firm supports businesses it believes reflect principles of American exceptionalism. The investment deepens Polymarket’s ties to US politics, especially as it aims to re-enter the regulated US market.

Polymarket Navigates Regulatory Landscape

Polymarket has faced regulatory pushback in recent years. In 2022, the Commodity Futures Trading Commission fined the platform $1.4 million. The penalty was for running an unregistered swaps platform. 

As part of the settlement, Polymarket had to block US users. Since then, it has made efforts to return legally to the US market. In July 2025, Polymarket acquired QCEX, a CFTC-regulated exchange, for $112 million. The acquisition followed the closure of investigations by both the CFTC and the Department of Justice.

Election Betting Draws Political Scrutiny

During the 2024 presidential election cycle, Polymarket handled over $3.6 billion in wagers. About $2.7 billion was staked on the Trump–Harris race alone. Such a degree of political betting has put a red flag rising in the minds of lawmakers. 

In August 2024, a number of senators pressured the CFTC to prohibit election-related markets. They cautioned against insider betting and its effects on the confidence of the members of the general public. Similar concerns have also been raised in sports. The NFL criticized platforms like Polymarket, citing integrity risks and lack of regulation.

Market Expansion and Rival Competition

Polymarket continues to grow despite criticism. In July, reports indicated it was finalizing a $200 million funding round. This round would raise the platform’s valuation to $1 billion. In August, it released a US-focused rulebook and launched digital ads targeting American users. Meanwhile, Trump Jr. also holds an advisory role at Kalshi, Polymarket’s main competitor.

Kalshi has also clashed with regulators over political betting contracts. Both platforms saw increased downloads ahead of the 2024 election. Users turned to them as alternatives to traditional polling. Elon Musk publicly supported prediction markets during that period.

The sector is drawing attention from larger players. Robinhood and Coinbase are exploring prediction markets as potential business segments. These platforms seek to enter the space as regulated operators. The line between finance and gambling continues to blur as interest in prediction markets grows.