Polymarket Seeks CFTC Approval to Reopen Exchange 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 its US trader ban, which was implemented following a 2022 settlement. If approved, this move would allow Polymarket to compete with Kalshi and bring more event-trading under CFTC oversight. The CFTC had previously cleared a separate US-only Polymarket platform, which has yet to launch. Prediction markets, allowing 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 to remove the US block, a process potentially simplified by the current vacant commission seats. Chairman Michael Selig has previously stated that states lack 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.