Polymarket Seeks CFTC Approval to Reopen Main Platform to US Traders

Polymarket is reportedly pursuing Commodity Futures Trading Commission (CFTC) approval to relaunch its primary prediction market for US-based users. According to sources cited by Bloomberg, the company has been in discussions with CFTC officials to lift the ban on US traders, which was imposed following a 2022 settlement. The ban led to the relocation of Polymarket's main exchange overseas. However, the CFTC previously approved a separate US-only platform operated by Polymarket in November, after the company acquired a registered exchange. This platform has yet to be fully launched. Prediction markets, which allow users to trade contracts tied to future events such as elections, sports, or economic data, have faced increasing scrutiny from states that view them as unlicensed gambling operations. The CFTC must vote to remove the US block, a process that may be simplified due to 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 a soldier was accused of using a VPN to access Polymarket's international exchange and earn over $400,000 from trades based on classified information. Polymarket has declined to comment on the matter.