Polymarket Seeks CFTC Approval to Reopen US Market

Polymarket is reportedly in discussions with the Commodity Futures Trading Commission (CFTC) to obtain permission to relaunch its primary prediction market for US-based users. This development comes after the company had previously prohibited US traders from accessing its main exchange following a 2022 settlement with the CFTC, which led to the platform's relocation overseas. According to sources, Polymarket has been engaging with CFTC officials to potentially lift the ban, paving the way for the platform's return to the US market. The CFTC had previously approved a separate, US-only Polymarket platform in November, although it has yet to be fully operational. Prediction markets, which allow users to trade contracts tied to future events such as elections, sports, and economic data, have faced growing scrutiny from states that view them as unlicensed gambling operations. The CFTC's approval process would require a vote, which 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 talks between Polymarket and the CFTC coincide with a recent incident in which a soldier was accused of using a VPN to access Polymarket's international exchange, resulting in over $400,000 in trades based on classified information. Polymarket has declined to comment on the matter.