Polymarket Seeks CFTC Approval to Reopen Platform to US Traders

Polymarket is reportedly seeking Commodity Futures Trading Commission approval to relaunch its main prediction market for US-based users. According to sources, the company has been in discussions with CFTC officials to lift the ban imposed since 2022, when Polymarket relocated its main exchange overseas following a settlement. The CFTC previously approved a separate US-only Polymarket platform in November after the company acquired a registered exchange, although it has yet to be fully launched. Prediction markets, which allow users to trade contracts tied to future events like elections and sports games, have faced increasing 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. 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.