Polymarket Seeks CFTC Approval to Reenter US Market

Polymarket is pursuing Commodity Futures Trading Commission (CFTC) approval to relaunch its primary prediction market for US-based users. According to sources, the company has been in discussions with CFTC officials to lift the US trader ban imposed since its 2022 settlement. The ban led to the platform's relocation overseas. Notably, the CFTC previously approved a separate US-only Polymarket platform in November after the company acquired a registered exchange, although this site has yet to launch fully. Prediction markets, which involve trading contracts tied to future events like elections or sports, have faced scrutiny from states claiming they operate as unlicensed gambling operations. The CFTC must vote to remove the US block, a process potentially simplified by the current four vacant commission seats, leaving Chairman Michael Selig as the sole sitting commissioner. Selig has previously argued that states lack authority over prediction markets, which fall under the CFTC's jurisdiction. The development follows an incident where a soldier allegedly 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.