Polymarket Seeks CFTC Approval to Reopen to US Traders

Polymarket is reportedly in discussions with the Commodity Futures Trading Commission (CFTC) to reinstate access to its main prediction market for US-based users. According to sources cited by Bloomberg, the company has been engaged in talks with CFTC officials to lift the ban imposed since its 2022 settlement, which led to the relocation of its main exchange overseas. The CFTC had previously approved a separate US-only platform operated by Polymarket in November, following the company's acquisition of a registered exchange. However, this platform has yet to be fully launched. Prediction markets, which allow users to trade contracts tied to future events such as elections, sports, or economic data, have faced increasing scrutiny from states that argue they operate as unlicensed gambling operations. The CFTC would need to hold a vote to remove the US block, a process potentially simplified by the current vacancies in 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.