Polymarket Seeks CFTC Approval to Reopen US Market

Polymarket is reportedly pursuing approval from the Commodity Futures Trading Commission 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 cleared 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, have faced increasing scrutiny from states claiming they operate as unlicensed gambling operations. The CFTC would need to vote on removing Polymarket's US block, a process potentially simplified by the current vacant commission seats. Chairman Michael 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 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.