JPMorgan cuts ties with Polymarket over regulatory concerns

JPMorgan Chase terminated its banking services for Polymarket in late 2025, the Financial Times reported on Thursday, citing regulatory concerns as the primary driver of the decision.

The termination of the banking relationship underscores growing scrutiny of prediction markets in the U.S., where platforms like Polymarket facilitate wagering on geopolitical events, corporate outcomes and other non-financial events. Regulators have increasingly focused on the legal and compliance risks associated with such markets, particularly their potential classification as unregistered securities or gambling operations.

Polymarket, which operates as a decentralized prediction market, allows users to trade contracts tied to real-world events using cryptocurrency. The platform has faced regulatory pressure in the past, including a 2022 investigation by the Commodity Futures Trading Commission (CFTC) into whether its activities violated U.S. derivatives laws. While Polymarket has since adjusted its operations to comply with evolving regulations, the termination of JPMorgan’s banking services suggests lingering compliance challenges.

A JPMorgan spokesperson declined to comment on the report. Polymarket did not immediately respond to requests for comment.

The move by JPMorgan reflects broader caution among traditional financial institutions toward businesses operating in regulatory gray areas, particularly those involving cryptocurrency or decentralized platforms. It also highlights the challenges prediction markets face in securing stable banking partnerships amid uncertain regulatory frameworks.