Polymarket Seeks CFTC Approval to Reopen Exchange to US Traders

Polymarket is reportedly pursuing approval from the Commodity Futures Trading Commission (CFTC) to relaunch its primary prediction market for US-based users. According to recent discussions between the company and CFTC officials, as reported by Bloomberg, Polymarket aims to lift its US trader ban. The ban was initially put in place following a 2022 settlement with the CFTC, resulting in the exchange being relocated overseas. Notably, the CFTC previously cleared a separate US-exclusive Polymarket platform in November after the company acquired a registered exchange, although the site has yet to be fully launched. Prediction markets, which allow users to trade contracts tied to future events such as elections, sports games, or economic data, have faced increased scrutiny from states arguing they operate as unlicensed gambling operations. For the CFTC to remove the 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. These discussions also follow an incident where 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.