Polymarket Seeks CFTC Approval to Reopen Exchange to US Traders

Polymarket is reportedly seeking approval from the Commodity Futures Trading Commission (CFTC) to relaunch its main prediction market for US users. The company has been in discussions with CFTC officials to lift the ban on US-based traders, which was imposed after a 2022 settlement. If approved, this move would allow Polymarket to compete with Kalshi and bring more event-trading activity under regulatory oversight. The CFTC had previously cleared a separate US-only Polymarket platform, but it has yet to launch. Prediction markets, which allow users to trade contracts tied to future events, have faced scrutiny from states claiming they operate as unlicensed gambling operations. The CFTC would need to vote to remove the US block, a process that may be simplified due to 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 a soldier was accused of using a VPN to access Polymarket's international exchange and make over $400,000 from trades based on classified information. Polymarket has declined to comment on the matter.