Polymarket Aims to Revive US Operations with CFTC Approval

Polymarket is reportedly seeking clearance from the Commodity Futures Trading Commission (CFTC) 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 to lift the ban on US traders, which was implemented following a 2022 settlement that led to the exchange being relocated 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 be fully operational. Prediction markets, which allow users to trade contracts tied to future events such as elections, sports, or economic data, have faced growing scrutiny from states that view them as unlicensed gambling operations. The CFTC would need to hold a vote to remove the US blockade, 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 development comes 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.