According to a report by The Wall Street Journal on August 15th, sources familiar with the matter said that JPMorgan Chase terminated its banking relationship with prediction market Polymarket last October due to regulatory concerns. However, JPMorgan Chase still maintains some working relationships with Polymarket and other prediction market companies.
A Polymarket spokesperson stated that the company maintains a "close and active relationship" with JPMorgan Chase through multiple entities. Polymarket CEO Shayne Coplan has also attended three JPMorgan Chase events in the past year. Earlier this year, a major Polymarket investor assisted in its discussions with large banks such as Citigroup and Fifth Third.
Currently, prediction markets are facing stricter scrutiny from state and federal regulators in the United States. The Commodity Futures Trading Commission is investigating Polymarket, and the New York City Council is also investigating its marketing practices; meanwhile, several states are still litigating whether prediction markets should be regulated as gambling businesses.
JPMorgan Chase had previously drawn scrutiny from the Trump administration over its alleged "de-banking" practices. Trump has asked regulators to investigate whether banks have engaged in "politicized or illegal de-banking," and JPMorgan Chase received a subpoena from the U.S. Department of Justice last month for this reason.