Polymarket Seeks CFTC Approval to Reopen to US Traders

Polymarket is reportedly seeking regulatory approval from the Commodity Futures Trading Commission (CFTC) to relaunch its primary prediction market for US-based users. According to recent discussions with CFTC officials, the company aims to lift its US trader ban, which was imposed following a 2022 settlement. The CFTC had previously greenlit a separate US-only Polymarket platform in November, after the company acquired a registered exchange. Prediction markets, which allow users to trade contracts tied to future events like elections and sports, have faced increased scrutiny from states claiming they operate as unlicensed gambling operations. The CFTC's approval process may be simplified due to four vacant commission seats, leaving Chairman Michael Selig as the sole sitting commissioner. Selig has previously argued that states lack jurisdiction over prediction markets, which fall under the CFTC's authority. The developments come 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.