Polymarket Seeks CFTC Approval to Reopen Exchange to US Traders

Polymarket is reportedly in talks with the Commodity Futures Trading Commission (CFTC) to relaunch its main prediction market for US users. According to sources familiar with the discussions, the company has been negotiating with CFTC officials to lift its ban on US-based 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 last 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 increased scrutiny from states that view them as unlicensed gambling operations. The CFTC's approval process would require a vote, which 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 discussions come amid a recent incident in which a soldier was accused of using a VPN to access Polymarket's international exchange and make over $400,000 from trades based on classified information. Polymarket has declined to comment on the matter.