Polymarket Seeks Regulatory Approval to Reopen Exchange to US Traders

Polymarket is reportedly pursuing approval from the Commodity Futures Trading Commission (CFTC) to relaunch its primary prediction market for US-based users. Recent discussions between the company and CFTC officials, as reported by Bloomberg, indicate a potential lifting of the ban on US traders that has been in place since 2022. The ban was imposed after Polymarket reached a settlement with the CFTC and subsequently relocated its main exchange overseas. The CFTC had previously cleared a separate US-only platform operated by Polymarket in November, following the company's acquisition of a registered exchange. However, this platform 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 that argue they operate as unlicensed gambling operations. The CFTC would need to hold a vote to remove the US block on Polymarket, a process that may be simplified due to 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 and earn over $400,000 from trades based on classified information. Polymarket has declined to comment on the matter.