Polymarket Seeks CFTC Approval to Reopen US Market

Polymarket is pursuing regulatory approval from the Commodity Futures Trading Commission (CFTC) to relaunch its primary prediction market for US-based users. According to recent reports, the company has engaged in discussions with CFTC officials to lift the ban on US traders, which was imposed following a 2022 settlement. The ban led to the relocation of Polymarket's main exchange overseas. Notably, the CFTC previously cleared a US-exclusive Polymarket platform in November, although it has yet to be fully operational. Prediction markets, which facilitate trading of contracts tied to future events such as elections and sports games, have faced increased scrutiny from states claiming they operate as unlicensed gaming operations. To remove the US block, the CFTC would need to hold a vote, a process potentially simplified by the current vacancy of four commission seats, leaving Chairman Michael Selig as the sole sitting commissioner. Selig has previously asserted that states lack the authority to regulate prediction markets, which fall under the CFTC's jurisdiction. These developments follow allegations of a soldier using a VPN to access Polymarket's international exchange, resulting in over $400,000 in trades based on classified information. Polymarket has declined to comment on the matter.