Polymarket Seeks CFTC Approval to Reopen Its Main Exchange to US Traders

Polymarket is reportedly in talks with the Commodity Futures Trading Commission (CFTC) to obtain approval for reopening its primary prediction market to US-based users. Following a 2022 settlement and subsequent relocation of its main exchange overseas, the company has been banned from serving US traders. Recent discussions between Polymarket and CFTC officials, as reported by Bloomberg, suggest a potential reversal of this ban. The CFTC had previously approved a separate, US-only Polymarket platform in November after the company acquired a registered exchange, although this platform has yet to launch fully. 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. The CFTC would need to hold a 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 the authority to regulate prediction markets, which fall under the CFTC's jurisdiction. These developments come after a recent incident where 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.