Polymarket Seeks CFTC Approval to Reopen US Market

Polymarket is pursuing CFTC approval to relaunch its primary prediction market for US users. The company has been in discussions with CFTC officials to lift the US trader ban, which was imposed following a 2022 settlement. The ban led to the relocation of its main exchange overseas. A separate US-only platform, cleared by the CFTC in November, is yet to be fully operational. Prediction markets, which allow users to trade event-based contracts, 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 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 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.