Polymarket Seeks CFTC Approval to Reopen Exchange to US Traders

Polymarket is pursuing Commodity Futures Trading Commission (CFTC) approval to relaunch its main prediction market for US users. Recent discussions between the company and CFTC officials, as reported by Bloomberg, indicate a potential lift of the US trader ban imposed since 2022. The ban was a result of a settlement with the CFTC, prompting Polymarket to relocate its main exchange overseas. In a separate development, the CFTC approved a US-only Polymarket platform in November after the company acquired a registered exchange, although the site has not yet fully launched. Prediction markets, which allow users to trade contracts tied to future events like elections and sports games, have faced increased scrutiny from states claiming they operate as unlicensed gambling operations. The CFTC must vote to remove the 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 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.