Polymarket Seeks CFTC Approval to Reopen Exchange to US Traders

Polymarket is reportedly in talks with the Commodity Futures Trading Commission (CFTC) to obtain approval for reopening its main prediction market to US-based users. According to sources, the company has been discussing the possibility of lifting its US trader ban with CFTC officials. The ban was initially imposed following a 2022 settlement, after which the main exchange was relocated overseas. If approved, this move would allow Polymarket to compete with Kalshi and bring more event-driven trading under the CFTC's regulatory supervision. The CFTC had previously cleared a separate US-only platform operated by Polymarket in November. Prediction markets, which allow users to trade contracts tied to future events such as elections and sports games, have drawn increased scrutiny from various states due to concerns over unlicensed gambling operations. The CFTC would need to hold a vote to remove the US block, a process that 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 purview. 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.