Polymarket Pursues CFTC Approval to Reopen Its Main Exchange to US Traders

Polymarket has initiated the process of seeking approval from the Commodity Futures Trading Commission (CFTC) to relaunch its primary prediction market for US users. According to sources cited by Bloomberg, the company has been in discussions with CFTC officials regarding the removal of its US trader ban, which was implemented following a settlement in 2022. The CFTC had previously cleared a separate US-only platform operated by Polymarket in November, after the company acquired a registered exchange. However, this platform has yet to be fully launched. Prediction markets, which allow users to trade contracts tied to future events such as elections or sports games, have faced increased scrutiny from states that argue they function as unlicensed gambling operations. The CFTC would need to hold a vote to lift the US block, a process that may be simplified due to the current vacancy of four commission seats, leaving Chairman Michael Selig as the sole sitting commissioner. Selig has previously argued that states lack the authority to regulate prediction markets, which fall under the CFTC's jurisdiction. The development comes after a soldier was accused of using a VPN to access Polymarket's international exchange and make over $400,000 from trades based on classified information. Polymarket has declined to comment on the matter.