JPMorgan distances itself from Polymarket: regulatory risks force the platform to seek new partners
The largest American bank, JPMorgan, has decided to cease banking services for the prediction platform Polymarket, a move that marks growing regulatory pressure on the prediction market sector. As it turned out, the demand to find an alternative financial partner was voiced back in October 2025 — long before this situation became public.
The reason for this decision is the increasing regulatory risks associated with Polymarket's operations. The platform, which allows users to place bets on the outcomes of real-world events — from political elections to sports matches and economic indicators — operates in a gray area of U.S. legislation. The Commodity Futures Trading Commission (CFTC) and other oversight bodies have repeatedly expressed concerns that such services may violate rules on gambling and financial derivatives.
Current situation and prospects
At present, Polymarket has already moved to another financial institution for its banking services, but it does not intend to completely sever ties with JPMorgan. According to available information, the bank continues to cooperate with the platform in a number of areas not directly related to settlement and cash services. Moreover, JPMorgan has expressed interest in acting as an underwriter if Polymarket decides to conduct an initial public offering (IPO).
This interest is telling: despite regulatory difficulties, the bank sees potential in monetizing the platform at later stages of its development. However, for Polymarket itself, losing a partner like JPMorgan is a serious signal. It means that even the largest financial institutions are not willing to risk their reputation to work with projects that may be deemed non-compliant with legal requirements.
In my analysis, the situation around Polymarket reflects a broader trend: traditional banks are increasingly distancing themselves from cryptocurrency and related projects if they lack a clear regulatory status. For the platform, this could serve as an incentive to accelerate the licensing process or change its business model to meet the requirements of oversight bodies. Otherwise, even with a successful IPO, it will be extremely difficult to build long-term relationships with institutional players.