Polymarket Seeks CFTC Approval to Reopen Exchange to US Traders

Polymarket is reportedly seeking Commodity Futures Trading Commission (CFTC) approval to relaunch its main prediction market for US users. The company has been in discussions with CFTC officials to lift its US trader ban, imposed after a 2022 settlement. If approved, this move would allow Polymarket to rival Kalshi in the US market and bring more event-based trading under CFTC oversight. The CFTC previously cleared a separate US-only Polymarket platform last November. Prediction markets, which allow users to trade contracts tied to future events, have faced increased scrutiny from states claiming they operate as unlicensed gambling operations. CFTC Chairman Michael Selig has argued that states lack the authority to regulate these markets, which fall under the CFTC's jurisdiction. The talks follow an incident where 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.