Polymarket Seeks CFTC Approval to Reopen Exchange to US Traders

Polymarket has initiated discussions with the Commodity Futures Trading Commission (CFTC) to revive access to its primary prediction market for US-based users. According to sources cited by Bloomberg, the company has been engaging with CFTC officials in recent weeks to potentially lift the ban imposed on US traders since 2022, when Polymarket relocated its main exchange overseas as part of a settlement. Notably, the CFTC previously approved a separate, US-exclusive Polymarket platform in November, following the company's acquisition of a registered exchange, although this platform has yet to be fully launched. Prediction markets, which allow users to trade contracts tied to future events such as elections, sports, or economic data, have faced heightened scrutiny from states alleging they operate as unlicensed gambling operations. To remove the US block, the CFTC would need to hold a vote, a process that may be streamlined due to 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 an incident where 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 declined to comment on the matter.