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

Polymarket is reportedly pursuing approval from the Commodity Futures Trading Commission (CFTC) to relaunch its primary prediction market for US users. The company has been in discussions with CFTC officials to lift the ban on US-based traders, which was implemented following a 2022 settlement that led to the exchange being relocated overseas. If approved, this move would allow Polymarket to rival Kalshi in the US and bring more event-driven trading under the CFTC's regulatory supervision. The CFTC had previously cleared a US-only Polymarket platform in November after the company acquired a registered exchange, although the site has yet to be fully launched. Prediction markets, which facilitate trading of contracts tied to future events such as elections, sports, or economic data, have faced growing scrutiny from states that view them as unlicensed gambling operations. The CFTC would need to hold a vote to remove the US block on Polymarket, a process that may be simplified due to the current vacancies in 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 on the heels of an incident where a soldier was accused of using a VPN to access Polymarket's international exchange and earn over $400,000 from trades based on classified information. Polymarket has declined to comment on the matter.