Polymarket Aims to Revive US Operations with CFTC Approval

Polymarket is reportedly seeking Commodity Futures Trading Commission (CFTC) approval to relaunch its primary prediction market for US-based users. According to recent discussions between the company and CFTC officials, as reported by Bloomberg, Polymarket may soon lift its US trader ban, which was imposed following a 2022 settlement that led to the platform's relocation overseas. The CFTC previously approved a separate, US-exclusive Polymarket platform in November, which has yet to be fully operational. Prediction markets, allowing users to trade contracts tied to future events like elections or sports, 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 previously argued that states lack authority over 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, making over $400,000 from trades based on classified information. Polymarket has declined to comment on the matter.