Polymarket Aims to Revive US Operations with CFTC Approval

Polymarket is reportedly seeking clearance from the Commodity Futures Trading Commission (CFTC) to relaunch its primary prediction market for US-based traders. According to sources, the company has engaged in discussions with CFTC officials to lift the ban imposed in 2022, which led to the relocation of its main exchange overseas. If approved, this move would allow Polymarket to compete more effectively with Kalshi in the US market and bring event-trading activities under the CFTC's regulatory purview. The CFTC had previously authorized a separate US-only Polymarket platform in November, following the company's acquisition of a registered exchange. Prediction markets, which facilitate trading of 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's decision to potentially remove the US block on Polymarket 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 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.