Polymarket Seeks CFTC Approval to Relaunch Main Exchange for US Traders

Polymarket is pursuing Commodity Futures Trading Commission (CFTC) approval to reintroduce its primary prediction market to US-based users. According to sources, the company has been in discussions with CFTC officials to lift the ban on US traders, which was implemented following a 2022 settlement. The CFTC had previously approved a separate US-only platform operated by Polymarket in November. Prediction markets, which allow users to trade contracts tied to future events, have faced increased scrutiny from states claiming they operate as unlicensed gambling platforms. The CFTC must vote to remove the US block, a process potentially simplified by the current vacancies in 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.