JPMorgan Cuts Polymarket Banking Ties as Regulatory Risks Persist

Polymarket, a prediction market, had its banking relationship with JPMorgan Chase severed, illustrating regulatory scrutiny’s impact on customary banks’ relationships with cryptocurrency businesses.

According to an October 2025 report from the Financial Times, JPMorgan told Polymarket that it would have to find a different bank, at which point Polymarket moved accounts to a different bank, which was not identified. Neither JPMorgan nor Polymarket has said what raised concerns.

The move comes amid a growing regulatory environment for prediction markets in the United States, having previously been hit with enforcement action from the Commodity Futures Trading Commission in 2022.

As part of the settlement, the company agreed to pay a $1.4 million civil penalty for easing the trading of event-based binary options contracts off-exchange without being registered, and to wind down any markets that do not comply with U.S. commodities law.

Polymarket later moved back into the United States market in 2025 using a regulated model. Nevertheless, JPMorgan’s decision shows that regulatory clarity is not sufficient to address banks’ internal compliance and risk concerns to serve firms in the digital asset markets and prediction markets.