Polymarket Aims to Revive US Operations with CFTC Approval

Polymarket is reportedly seeking approval from the Commodity Futures Trading Commission (CFTC) to relaunch its primary prediction market for US-based users. According to recent discussions between the company and CFTC officials, as reported by Bloomberg, Polymarket may soon lift its US trader ban, which was imposed following a 2022 settlement that led to the exchange's relocation overseas. The CFTC had previously cleared a separate, US-exclusive Polymarket platform in November after the company acquired a registered exchange, although the site has yet to be fully launched. Prediction markets, which allow users to trade contracts tied to future events such as elections, sports, or economic data, have faced increased scrutiny from states claiming they operate as unlicensed gambling operations. The CFTC would need to hold a 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 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.