Polymarket Seeks CFTC Approval to Reopen US Market

Polymarket is reportedly seeking Commodity Futures Trading Commission (CFTC) approval to relaunch its main exchange for US traders. The company has been in discussions with CFTC officials to lift the ban on US-based users, which was implemented after a 2022 settlement. If approved, this move would allow Polymarket to compete with Kalshi and bring more event-trading activities under CFTC regulation. The CFTC had previously cleared a separate US-only Polymarket platform, but it has yet to launch. Prediction markets, which allow users to trade contracts tied to future events, have faced increased scrutiny from states arguing they operate as unlicensed gambling operations. The CFTC would need to vote on removing the US block, a process that may be simplified with four commission seats currently vacant. This development comes after a recent incident where 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.