Polymarket Seeks CFTC Approval to Reopen Exchange to US Traders

Polymarket is pursuing Commodity Futures Trading Commission (CFTC) approval to relaunch its main prediction market for US users. Following a 2022 settlement, the company had restricted US-based traders and relocated its primary exchange overseas. Recent discussions between Polymarket and CFTC officials, as reported by Bloomberg, indicate a potential reversal of this ban. The CFTC previously approved a separate US-only Polymarket platform in November after the company acquired a registered exchange, although this platform has yet to launch fully. Prediction markets, which allow users to trade contracts tied to future events like elections or sports games, have faced increased scrutiny from states claiming they operate as unlicensed gambling operations. The CFTC must vote to remove the US block, a process potentially simplified by 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. These developments follow allegations of a soldier 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.