Polymarket Seeks CFTC Approval to Reopen Exchange to US Traders

Polymarket is reportedly pursuing approval from the Commodity Futures Trading Commission (CFTC) to relaunch its main exchange for US-based users. According to sources, the company has been in discussions with CFTC officials to lift the ban on US traders, which was imposed following a 2022 settlement. The CFTC had previously cleared a separate US-only platform operated by Polymarket, but it has yet to be fully launched. The company's prediction markets, which allow users to trade contracts tied to future events, have faced increased scrutiny from states claiming they operate as unlicensed gambling operations. A CFTC vote is required to remove the US block, and with four commission seats vacant, Chairman Michael Selig's stance on the issue may be pivotal. 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 recent incident where a soldier allegedly used 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.