Polymarket Seeks CFTC Approval to Reopen Exchange for US Traders

Polymarket is currently in discussions with the Commodity Futures Trading Commission (CFTC) to obtain approval for reopening its primary prediction market to users in the United States. Following a 2022 settlement and relocation of its main exchange overseas, the company has been prohibited from serving US-based traders. Recent talks between Polymarket and CFTC officials, as reported by Bloomberg, indicate a potential lift of this ban. The CFTC had previously approved a separate US-exclusive Polymarket platform last November, which has yet to be fully launched. Prediction markets, allowing users to trade contracts tied to future events like elections or sports games, have faced increased scrutiny from states claiming they operate as unlicensed gambling operations. The CFTC must 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 argued that states lack the authority to regulate prediction markets, which fall under the CFTC's jurisdiction. These developments follow allegations of a soldier 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.