Polymarket Seeks CFTC Approval to Relaunch Main Exchange for US Traders

Polymarket is reportedly in discussions with the Commodity Futures Trading Commission (CFTC) to obtain approval for reopening its primary prediction market to US-based users. According to sources cited by Bloomberg, the company has been engaged in talks with CFTC officials to lift the ban on US traders, which was imposed following a 2022 settlement. The ban led to the relocation of Polymarket's main exchange overseas. In a related development, the CFTC gave its approval to a separate US-only platform operated by Polymarket last November, after the company acquired a registered exchange. However, this platform has not yet been 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 would need to hold a vote to remove the US block on Polymarket, a process that 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 talks between Polymarket and the CFTC come on the heels of an incident in which a soldier was accused of using a Virtual Private Network (VPN) to access Polymarket's international exchange and earn over $400,000 from trades based on classified information. Polymarket has declined to comment on the matter.