Polymarket Aims to Revive US Operations with CFTC Approval

Polymarket is reportedly pursuing approval from the Commodity Futures Trading Commission (CFTC) to relaunch its primary prediction market for US-based users. According to sources cited by Bloomberg, the company has engaged in discussions with CFTC officials in recent weeks to lift the ban on US traders, which was imposed following a 2022 settlement. The ban led to the relocation of Polymarket's main exchange overseas. Notably, the CFTC 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 increased scrutiny from states claiming they operate as unlicensed gambling entities. The CFTC would need to hold a vote to remove the US block on Polymarket, 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, generating over $400,000 from trades based on classified information. Polymarket has declined to comment on the matter.