Polymarket Seeks CFTC Approval to Reopen Exchange to US Traders

Polymarket is pursuing Commodity Futures Trading Commission (CFTC) approval to relaunch its main prediction market for US-based users. Recent discussions between the company and CFTC officials have focused on lifting the US trader ban, which was implemented following a 2022 settlement. The CFTC previously approved a separate US-only platform in November, but it has yet to be fully launched. Prediction markets, which allow users to trade event-based contracts, have faced increased 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 argued that states lack the authority to regulate prediction markets, which fall under the CFTC's jurisdiction. The development follows allegations of a soldier using a VPN to access Polymarket's international exchange and profit from trades based on classified information. Polymarket has declined to comment on the matter.