Polymarket Seeks CFTC Approval to Relaunch US Operations

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. According to sources cited by Bloomberg, the company has been engaged in talks with CFTC officials over the past few weeks to lift the ban on US traders, which was imposed following a 2022 settlement that led to the exchange being relocated overseas. The CFTC had previously cleared 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 increased scrutiny from states that view them 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, leaving Chairman Michael Selig as the sole sitting commissioner. Notably, Selig has previously argued that states lack the authority to regulate prediction markets, which fall under the CFTC's jurisdiction. The development comes on the heels of a recent incident in which a soldier was accused of using a VPN to access Polymarket's international exchange and generate over $400,000 from trades based on classified information. Polymarket has declined to comment on the matter.