Polymarket Seeks CFTC Approval to Reopen Exchange to US Traders

Polymarket is reportedly seeking Commodity Futures Trading Commission (CFTC) approval to relaunch its main prediction market for US users. Following a 2022 settlement, the company had restricted access to its main exchange for US-based traders and relocated it overseas. Recent discussions between Polymarket and CFTC officials, as reported by Bloomberg, suggest the company may be able to lift this ban. The CFTC had previously approved a separate US-only platform operated by Polymarket in November. This development comes as prediction markets face growing scrutiny from states, which view them as unlicensed gambling operations. The CFTC's decision to potentially remove the US block on Polymarket's main exchange may be simplified due to 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. The news follows a recent incident in which a soldier allegedly used a VPN to access Polymarket's international exchange and made over $400,000 from trades based on classified information. Polymarket has declined to comment on the matter.