Polymarket Seeks CFTC Approval to Reopen to US Traders

Polymarket is pursuing Commodity Futures Trading Commission (CFTC) approval to relaunch its primary prediction market for US-based users. According to sources cited by Bloomberg, the company has been in discussions with CFTC officials regarding the lifting of its US trader ban, which was implemented following a 2022 settlement. The CFTC previously approved a separate US-only platform operated by Polymarket in November, after the company acquired a registered exchange. 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 claiming they operate as unlicensed gambling operations. The CFTC must vote to remove Polymarket's US block, 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 an incident in which a soldier allegedly used 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.