Polymarket Seeks CFTC Approval to Reopen Platform to US Traders

Polymarket is pursuing approval from the Commodity Futures Trading Commission to relaunch its main prediction market for US users. Recent discussions between the company and CFTC officials, as reported by Bloomberg, indicate a potential lift of the ban on US-based traders. The ban was imposed following a 2022 settlement, after which Polymarket relocated its main exchange overseas. The CFTC previously cleared a separate US-only Polymarket platform in November, which has yet to launch fully. Prediction markets, allowing users to trade contracts tied to future events, have faced increased scrutiny from states claiming they operate as unlicensed gambling operations. 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 argued that states lack the authority to regulate prediction markets, which fall under the CFTC's jurisdiction. The development follows allegations of a soldier 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.