Polymarket Aims to Revive US Operations with CFTC Approval

Polymarket is pursuing approval from the Commodity Futures Trading Commission to relaunch its primary prediction market for US-based users. Following a 2022 settlement with the agency, the company had relocated its main exchange overseas and barred US traders. According to recent discussions with CFTC officials, as reported by Bloomberg, Polymarket may soon lift this ban. The CFTC had previously cleared a separate, US-only platform operated by Polymarket in November, although it has yet to be fully launched. Prediction markets, which allow users to trade contracts tied to future events such as elections or sports games, have faced increasing 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 accusations against a soldier for using a VPN to access Polymarket's international exchange, resulting in over $400,000 in trades based on classified information. Polymarket has declined to comment on the matter.