Americans Trade Billions on Banned Polymarket, Exposing Regulatory Gaps

This study quantifies a significant enforcement gap: Americans are trading $10.6–$26.7 billion on a US-banned crypto platform, representing roughly 30% of total volume and highlighting regulators' difficulty containing offshore crypto derivatives trading. As prediction markets gain prominence in financial and political discourse, the research underscores the tension between regulatory restrictions and the borderless nature of crypto platforms.