Polymarket Seeks CFTC Approval to Reopen Exchange to US Traders

Polymarket is reportedly in discussions with the Commodity Futures Trading Commission (CFTC) to obtain approval for reopening its primary prediction market to US-based users. Following a 2022 settlement, the company had relocated its main exchange overseas and banned US traders. According to recent reports, Polymarket has been engaging with CFTC officials to potentially lift this ban. 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 launch fully. Prediction markets, which allow users to trade contracts tied to future events like elections or sports games, have faced increased scrutiny from states claiming they operate as unlicensed gambling operations. For the CFTC to remove Polymarket's US block, a vote would be required. This process might be simplified due to four vacant 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 discussions 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 has declined to comment on the matter.