Polymarket Seeks CFTC Approval to Reopen Platform 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 discussions with CFTC officials to lift the ban on US-based traders, which was implemented following a 2022 settlement. If approved, this move would allow Polymarket to compete with Kalshi in the US market and bring more event-trading under CFTC oversight. 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 claiming they operate as unlicensed gambling operations. The CFTC would need to vote on removing the US block, a process potentially simplified by the current vacancies in commission seats. Chairman Michael 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.