Nevada Court Grants Temporary Restraining Order Against Polymarket

A Nevada District Court judge has issued a Temporary Restraining Order (TRO) against Polymarket, the prominent decentralized information markets platform, citing immediate concerns regarding regulatory compliance and potential violations of state consumer protection and financial regulations. The TRO was granted late yesterday afternoon following an emergency filing brought by the Nevada Secretary of State’s Office.

The state’s complaint alleges that Polymarket has been operating markets accessible to Nevada residents that function as unregulated derivatives or unregistered securities contracts, particularly focusing on prediction markets related to political outcomes, economic indicators, and crypto asset prices. The filing argues that these offerings pose significant risk to residents and bypass mandatory state licensing requirements for financial and gaming operations.

The Temporary Restraining Order mandates that Polymarket must immediately cease all marketing and service provision directed toward or accessible by users within the state of Nevada. Furthermore, the platform is required to preserve all relevant data and trading records pertaining to state residents and trading activity dating back to the platform’s inception. Polymarket has yet to issue an official public comment regarding the court action.

Legal experts suggest this move signals increased regulatory scrutiny of decentralized finance (DeFi) platforms operating in gray areas of jurisdiction. The TRO is currently temporary, designed to maintain the status quo until a formal preliminary injunction hearing can take place, which the court has scheduled for early next month. The outcome of that hearing will determine whether the operational ban is extended indefinitely.

Source: Nevada Court Grants Temporary Restraining Order Against Polymarket