Polymarket Seeks CFTC Approval to Reopen Exchange to US Traders

Polymarket is pursuing Commodity Futures Trading Commission (CFTC) approval to relaunch its primary prediction market for US users. According to Bloomberg, the company has been in discussions with CFTC officials to lift the US trader ban, which was implemented after a 2022 settlement. The CFTC previously approved a separate US-only platform for Polymarket in November. Prediction markets, which allow users to trade contracts tied to future events, have faced increased 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 commission vacancies. Chairman Michael Selig has argued that states lack authority over prediction markets, which fall under CFTC 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.