Polymarket Seeks CFTC Approval to Reopen Platform to US Traders

Polymarket is pursuing regulatory approval from the Commodity Futures Trading Commission (CFTC) to relaunch its primary prediction market for US-based users. According to sources cited by Bloomberg, the company has engaged in discussions with CFTC officials to lift the ban on US traders, which was implemented following a 2022 settlement. The CFTC had previously cleared a separate, US-only platform operated by Polymarket in November, after the company acquired a registered exchange. Prediction markets, which allow users to trade contracts tied to future events such as elections and sports games, have faced increasing scrutiny from states that argue they function as unlicensed gambling operations. The CFTC would need to hold a vote to remove the US block, a process that may be simplified due to the current vacancy of four commission seats. This development comes after a recent incident in which a soldier was accused of using a VPN to access Polymarket's international exchange and make trades based on classified information, resulting in over $400,000 in profits. Polymarket has declined to comment on the matter.