Polymarket Aims to Revive US Operations with CFTC Approval

Polymarket is reportedly seeking clearance from the Commodity Futures Trading Commission (CFTC) to reintroduce its primary prediction market to American 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-based traders, which was imposed following a 2022 settlement that led to the relocation of its main exchange overseas. The CFTC had previously approved a separate, US-exclusive Polymarket platform in November after the company acquired a registered exchange, although this site has yet to launch fully. Prediction markets, which allow users to trade contracts linked to future events such as elections, sports, or economic data, have faced increasing scrutiny from states that view them as 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 jurisdiction. The developments come 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.