Polymarket Seeks CFTC Approval to Reopen Its Main Exchange to US Traders

Polymarket is currently in the process of obtaining approval from the Commodity Futures Trading Commission (CFTC) to relaunch its primary prediction market for US-based users. According to recent reports, the company has been engaged in discussions with CFTC officials regarding the potential lifting of its US trader ban, which was initially imposed following a 2022 settlement. The ban led to the relocation of Polymarket's main exchange overseas. In a separate development, the CFTC gave its clearance to a US-exclusive Polymarket platform last November, subsequent to the company's acquisition of a registered exchange. However, this platform has yet to be fully operational. Prediction markets, which allow users to trade contracts tied to future events such as elections, sports games, and economic data, have faced increased scrutiny from various states, with some arguing that they function as unlicensed gambling operations. For the CFTC to remove Polymarket's US block, a vote would be required. The current vacancy of four commission seats may simplify this process, with Chairman Michael Selig being the sole sitting commissioner. Selig has previously maintained that states lack the authority to regulate prediction markets, which fall under the CFTC's jurisdiction. These discussions follow allegations that a soldier used a Virtual Private Network (VPN) to access Polymarket's international exchange, generating over $400,000 from trades based on classified information. Polymarket has declined to comment on the matter.