Polymarket Seeks CFTC Approval to Reopen Platform to US Traders

Polymarket is reportedly seeking Commodity Futures Trading Commission (CFTC) approval to relaunch its main exchange for US-based traders. According to sources cited by Bloomberg, the company has been in discussions with CFTC officials to lift the ban on US users, which was implemented following a 2022 settlement. The CFTC had previously cleared a separate US-only platform for Polymarket in November after the company acquired a registered exchange, although this site has yet to fully launch. Prediction markets, which allow users to trade contracts tied to future events such as elections, sports, or economic data, have faced increased scrutiny from states claiming they operate as unlicensed gambling operations. The CFTC's approval process may 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. 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.