Polymarket Seeks CFTC Approval to Reopen Exchange to US Traders

Polymarket is reportedly pursuing 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 implemented following a 2022 settlement. If approved, this move would allow Polymarket to re-enter the US market and increase the regulatory oversight of event-trading activities. The CFTC had previously cleared a separate US-only Polymarket platform, but it has yet to be fully launched. Prediction markets, which enable users to trade contracts tied to future events, have faced scrutiny from states that argue they operate as unlicensed gambling operations. The CFTC's decision to remove the US block would require a vote, and the process may be simplified due to the current vacancy of four commission seats. Meanwhile, the talks come amid a recent incident where a soldier was accused of using a VPN to access Polymarket's international exchange and make significant profits from trades based on classified information. Polymarket has declined to comment on the matter.