Polymarket Seeks CFTC Approval to Reopen Main Exchange for US Traders

Polymarket is reportedly in discussions 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 talks with CFTC officials, as reported by Bloomberg, indicate that Polymarket may be able to lift this ban. The CFTC had previously cleared a separate, US-only platform operated by Polymarket in November, although this platform has yet to launch fully. Prediction markets, which allow users to trade contracts tied to future events like elections or sports games, have faced increased scrutiny from states claiming they operate as unlicensed gambling operations. For the CFTC to remove Polymarket's US block, a vote would be necessary, 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. The development comes after an incident where a soldier allegedly used 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.