Polymarket Seeks CFTC Approval to Reopen Exchange to US Traders

Polymarket is reportedly seeking Commodity Futures Trading Commission approval to relaunch its main prediction market for US-based users. The company has been in talks with CFTC officials to lift its US trading ban, which was imposed in 2022. The move aims to bring Polymarket's exchange back to the US, allowing it to compete with Kalshi and increase regulatory oversight of event-trading activities. The CFTC had previously cleared a separate US-only Polymarket platform, but it has yet to launch. Prediction markets, which allow users to trade contracts tied to future events, have faced scrutiny from states that argue they operate as unlicensed gambling operations. The CFTC's decision to remove Polymarket's US block would require a vote, which may be simplified due to the current vacancy of four commission seats. Chairman Michael Selig has previously stated 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.