Polymarket Seeks CFTC Approval to Relaunch Main Exchange for US Traders

Polymarket is pursuing regulatory clearance from the Commodity Futures Trading Commission (CFTC) to reintroduce its primary prediction market to US-based users. Recent discussions between the company and CFTC officials, as reported by Bloomberg, indicate that Polymarket aims to lift its US trader ban, which was imposed following a 2022 settlement. The ban led to the platform's relocation overseas. Meanwhile, the CFTC has already approved a separate, US-exclusive Polymarket platform, acquired through a registered exchange, although it has yet to be fully launched. Prediction markets, which allow users to trade contracts tied to future events like elections, sports, or economic data, have faced increased scrutiny from states claiming they operate as unlicensed gambling operations. The CFTC must 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. The development comes after 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.