Polymarket Seeks CFTC Approval to Reopen to US Traders

Polymarket is reportedly in discussions with the Commodity Futures Trading Commission (CFTC) to obtain permission to relaunch its main prediction market platform for US-based users. The company has been in talks with CFTC officials to lift the ban on US traders, which was imposed following a 2022 settlement. If approved, this move would allow Polymarket to re-enter the US market and increase its competitiveness against rivals like Kalshi. The CFTC had previously greenlit a separate US-only platform operated by Polymarket, which has yet to be fully launched. Prediction markets, which enable users to trade contracts tied to future events, have faced growing scrutiny from state authorities, who argue that these platforms operate as unlicensed gambling operations. The CFTC's approval process may be simplified due to the current vacancy of four commission seats, leaving Chairman Michael Selig as the sole sitting commissioner. Selig has previously asserted that states lack the authority to regulate prediction markets, which fall under the CFTC's jurisdiction. The development comes after a recent incident in which 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.