JPMorgan Chase terminated its banking relationship with Polymarket last year due to regulatory concerns, requiring the prediction market platform to secure a new lender in October 2023. Polymarket, banned from serving US customers after a 2022 CFTC enforcement action for operating an unregistered derivatives platform, now works with an undisclosed financial institution. The CFTC allowed Polymarket to re-enter the US market in 2023 but maintains an ongoing investigation.

Despite the termination, JPMorgan has retained ties, including inviting Polymarket’s CEO Shayne Coplan to a Miami conference. Polymarket emphasized continued operational integration with JPMorgan, calling claims of severed ties inaccurate. The situation highlights challenges for emerging industries in securing banking services amid regulatory scrutiny. Prediction markets, generating over $250bn in 2026 trading volume, face legal action in over a dozen US states.

Recent cases include a US soldier charged with profiting $400,000 from insider betting on a Maduro raid. The broader "debanking" issue has sparked political debate, with investigations into banks like JPMorgan for denying services to crypto firms. JPMorgan denies allegations of political bias in account closures.