(Reuters) -The U.S. Commodity Futures Trading Commission on Wednesday approved Polymarket, the world's largest prediction market, to relaunch in the United States, more than three years after its exit.

The decision comes amid a debate in the financial sector, with some experts highlighting prediction markets as superior to traditional polls, while others argue that these markets are little more than "digital casinos."

Polymarket allows users to profit from predictions on a wide range of events, including sports, entertainment, politics and the economy. Since the U.S. presidential election last year, trading in such event contracts has surged in popularity.

The regulatory body's decision follows Polymarket's $112 million acquisition of QCEX, a CFTC-licensed derivatives exchange and clearinghouse, a move that provides the necessary framework for the company to operate legally in the U.S.

The CFTC issued a no-action letter granting relief to the derivatives exchange and clearinghouse on certain recordkeeping and reporting requirements for event contracts.

Polymarket is set to return to the U.S. more than three years after agreeing to block American users from its platform, following a settlement with the Commodity Futures Trading Commission for operating an unregistered derivatives trading platform.

"Credit to the Commission and Staff for their impressive work. This process has been accomplished in record timing," said Polymarket's CEO Shayne Coplan in a post on X.

Polymarket's return also follows peer Kalshi's successful court challenge last year against the CFTC, after which it gained approval to list contracts related to the White House race.

These markets have already gained investors' interest, with Kalshi securing a $2 billion valuation from a $185 million raise earlier in the year. Polymarket also secured an investment last week from Donald Trump Jr.-backed venture capital firm 1789 Capital.