Polymarket Seeks CFTC Approval to Reopen Exchange to US Traders

Polymarket is reportedly seeking Commodity Futures Trading Commission (CFTC) approval to relaunch its main prediction market for US users. The company has been in talks with CFTC officials to lift the ban on US-based traders, which was imposed after a 2022 settlement. If approved, this move would allow Polymarket to compete with rival Kalshi in the US market and bring event-trading under CFTC regulatory supervision. The CFTC had previously cleared a separate US-only Polymarket platform in November. Prediction markets, which allow users to trade contracts tied to future events, have faced scrutiny from states arguing they operate as unlicensed gambling operations. The CFTC would need to vote on removing the US block, a process potentially simplified by the current vacancy of four commission seats. The development comes after a recent incident where a soldier was accused of using a VPN to access Polymarket's international exchange and make trades based on classified information, resulting in over $400,000 in profits. Polymarket has declined to comment on the matter.