Polymarket Seeks CFTC Approval to Reopen Exchange to US Traders

Polymarket is reportedly pursuing approval from the Commodity Futures Trading Commission (CFTC) to relaunch its primary prediction market for US-based users. According to sources cited by Bloomberg, the company has been in discussions with CFTC officials to lift the ban on US traders, which was imposed following a 2022 settlement. If approved, this move would allow Polymarket to re-enter the US market and enhance its competitiveness against rivals like Kalshi. The CFTC had previously cleared a separate US-only platform operated by Polymarket in November, after the company acquired a registered exchange. However, that platform has yet to be fully launched. Prediction markets, which enable users to trade contracts tied to future events such as elections, sports, or economic data, have faced increasing regulatory scrutiny, with some states arguing they operate as unlicensed gambling operations. The CFTC would need to hold a 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 previously asserted 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.