Polymarket Seeks CFTC Approval to Reopen US Market

Polymarket is reportedly in discussions with the Commodity Futures Trading Commission (CFTC) to obtain approval for reopening its primary prediction market to US-based traders. Following a 2022 settlement, the company had restricted access to its main exchange for US users and relocated it overseas. Recent talks between Polymarket and CFTC officials, as reported by Bloomberg, indicate a potential reversal of this ban. The CFTC had previously cleared a separate, US-only Polymarket platform in November after the company acquired a registered exchange, although the site has yet to launch fully. 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 view them as unlicensed gambling operations. The CFTC's approval process, which requires a vote, 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, making over $400,000 from trades based on classified information. Polymarket has declined to comment on the matter.