Polymarket Seeks CFTC Approval to Reopen US Market

Polymarket is reportedly seeking approval from the Commodity Futures Trading Commission (CFTC) to relaunch its main prediction market for US-based users. Following a 2022 settlement, the company had relocated its primary exchange overseas and prohibited US traders. Recent discussions between Polymarket and CFTC officials, as reported by Bloomberg, suggest that the company may be allowed to lift this ban. The CFTC had previously approved a separate US-only platform operated by Polymarket in November, although it has not yet launched. Prediction markets, which enable users to trade contracts tied to future events such as elections and sports games, have faced increased scrutiny from states that view them as unlicensed gambling operations. The CFTC's approval process, which requires a vote, may be simplified due to 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. The development comes after a soldier was accused of using a VPN to access Polymarket's international exchange and make over $400,000 from trades based on classified information. Polymarket has declined to comment on the matter.