Polymarket Aims to Regain Access to US Market with CFTC Approval

Polymarket is currently seeking approval from the Commodity Futures Trading Commission (CFTC) to reintroduce its primary prediction market to US-based users. According to sources cited by Bloomberg, the company has been in discussions with CFTC officials over the past few weeks to lift the ban on US traders, which was put in place following a 2022 settlement that led to the exchange being relocated overseas. The CFTC previously approved a separate, US-only platform operated by Polymarket in November, after the company acquired a registered exchange, although 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. For the CFTC to remove the US block, a vote would be necessary, 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 soldier was accused of using a VPN to access Polymarket's international exchange, resulting in over $400,000 in trades based on classified information. Polymarket has declined to comment on the matter.