Polymarket Seeks CFTC Approval to Reopen US Market

Polymarket is reportedly pursuing Commodity Futures Trading Commission (CFTC) approval to relaunch its primary prediction market for US-based users. Following a 2022 settlement, the company had relocated its main exchange overseas and barred US traders. Recent discussions between Polymarket and CFTC officials, as reported by Bloomberg, suggest a potential reversal of this ban. The CFTC had previously cleared a separate, US-only Polymarket platform last November after the company acquired a registered exchange, although this site has yet to launch fully. Prediction markets, which allow users to trade contracts tied to future events like elections, sports, or economic data, have faced increased scrutiny from states claiming they operate as unlicensed gambling operations. The CFTC must vote to remove Polymarket's 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.