Polymarket Seeks CFTC Approval to Reopen Exchange to US Traders

Polymarket is reportedly pursuing approval from the Commodity Futures Trading Commission (CFTC) to relaunch its primary prediction market for US-based users. According to sources cited by Bloomberg, the company has been in discussions with CFTC officials to lift the ban on US traders, which was imposed following a 2022 settlement. The CFTC had previously cleared a separate, US-only Polymarket platform in November after the company acquired a registered exchange, although this site has yet to fully launch. Prediction markets, which allow users to trade contracts tied to future events such as elections and sports games, have faced increased scrutiny from states claiming they operate as unlicensed gambling operations. The CFTC would need to hold a 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. 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.