Polymarket Seeks CFTC Approval to Reopen Exchange to US Traders

Polymarket is reportedly in discussions with the Commodity Futures Trading Commission (CFTC) to obtain approval for reopening its main prediction market to users in the United States. According to sources cited by Bloomberg, the company has been engaging with CFTC officials to lift the ban on US-based traders, which was imposed following a 2022 settlement that led to the relocation of its main exchange overseas. The CFTC had previously approved a separate, US-only platform operated by Polymarket 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 increasing scrutiny from states that view them as unlicensed gambling operations. For the CFTC to remove the US block, a vote would be required, 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. These developments come after a soldier was accused of using 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.