Polymarket Seeks CFTC Approval to Reopen Platform to US Traders

Polymarket is allegedly in discussions with the Commodity Futures Trading Commission (CFTC) to revive its primary prediction market for US-based users. According to recent reports, the company has been engaging with CFTC officials to potentially lift the ban on US traders, which was implemented following a 2022 settlement. This development could allow Polymarket to re-enter the US market and enhance competition with rival platforms like Kalshi. The CFTC had previously approved a separate, US-only Polymarket platform in November, although it has yet to be fully launched. Prediction markets, which facilitate trading on future events such as elections and sports games, have faced increased regulatory scrutiny. The CFTC's approval process may be simplified due to the current vacancy of four commission seats, leaving Chairman Michael Selig as the sole decision-maker. Notably, Selig has previously asserted that the CFTC has jurisdiction over prediction markets, rather than individual states. The talks coincide with a recent incident involving a soldier who allegedly used a VPN to access Polymarket's international exchange and made significant profits from trades based on classified information. Polymarket has declined to comment on the matter.