Polymarket Seeks CFTC Approval to Reopen Exchange to US Traders

Polymarket is pursuing approval from the Commodity Futures Trading Commission to relaunch its main prediction market platform for US users. According to recent discussions between the company and CFTC officials, as reported by Bloomberg, Polymarket aims to lift its US trader ban. The ban was imposed following a 2022 settlement, after which the main exchange was relocated overseas. The CFTC previously approved a separate US-only platform for Polymarket in November, but it has not yet been fully launched. Prediction markets, which allow users to trade contracts tied to future events like elections or sports, have faced increasing scrutiny from states claiming they operate as unlicensed gambling operations. The CFTC would need to vote on removing the US block, a process potentially simplified by the current vacancies in 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.