Polymarket Seeks CFTC Approval to Reopen Primary Exchange for US Traders

Polymarket is currently in discussions with the Commodity Futures Trading Commission (CFTC) to obtain approval for reinstating access to its main prediction market for users based in the US. The company has been in talks with CFTC officials over the past few weeks, as reported by Bloomberg, citing sources familiar with the matter. This development comes after Polymarket imposed a ban on US-based traders in 2022, following a settlement with the CFTC, and subsequently relocated its primary exchange overseas. In a separate move, the CFTC gave its approval for a US-exclusive Polymarket platform last 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 games, or economic data, have faced increased scrutiny from various states that view them as unlicensed gambling operations. For the CFTC to lift the US block on Polymarket, a vote would be necessary, a process that may be more straightforward given 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. These discussions follow allegations that a soldier used a Virtual Private Network (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.