Polymarket Seeks CFTC Approval to Reopen Main Exchange for US Traders

Polymarket is reportedly seeking regulatory approval from the Commodity Futures Trading Commission (CFTC) to relaunch its main prediction market platform for US users. According to recent discussions between the company and CFTC officials, as reported by Bloomberg, Polymarket aims to lift its ban on US-based traders, which has been in place since 2022. The company had previously relocated its main exchange overseas following a settlement with the CFTC. Notably, the CFTC had approved a separate US-only Polymarket platform in November after the company acquired a registered exchange, although this site 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 increasing scrutiny from states that view them as unlicensed gambling operations. The CFTC would need to vote on removing Polymarket's US block, 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 development comes after 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.