Polymarket Seeks CFTC Approval to Reopen Platform to US Traders

Polymarket is in the process of obtaining approval from the Commodity Futures Trading Commission (CFTC) to relaunch its main predictive market platform for US-based users. According to sources, the company has engaged in discussions with CFTC officials over the past few weeks to lift the ban on US traders, which was imposed following a 2022 settlement. The CFTC had previously approved a separate US-only platform operated by Polymarket in November, after the company acquired a registered exchange. However, this platform has not yet been fully launched. Predictive markets, which allow users to trade contracts tied to future events such as elections and sports games, have faced increased scrutiny from authorities, who argue that they operate as unlicensed gambling operations. The CFTC would need to hold a vote to remove the US block, a process that may be simplified due to the current vacancy of four commission seats, leaving Chairman Michael Selig as the sole sitting commissioner. Selig has previously stated that the authority to regulate predictive markets lies with the CFTC, rather than individual states. The development comes after 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.