Polymarket Seeks CFTC Approval to Reopen US Market

Polymarket is reportedly in talks with the Commodity Futures Trading Commission (CFTC) to reinstate access to its main prediction market for US-based users. Following a 2022 settlement, the platform had restricted US traders and relocated its primary exchange overseas. Recently, the company has been discussing the possibility of lifting this ban with CFTC officials, as reported by Bloomberg. The CFTC had previously approved a separate, US-only Polymarket platform in November, after the company acquired 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 claiming they operate as unlicensed gambling operations. For the CFTC to remove the US block, a vote would be required. The process may be simplified due to four vacant 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 developments follow allegations that a soldier used 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.