Polymarket Seeks CFTC Approval to Reopen Platform to US Traders

Polymarket is pursuing Commodity Futures Trading Commission (CFTC) approval to relaunch its primary prediction market for US-based users. According to Bloomberg, the company has engaged in discussions with CFTC officials to lift the ban on US traders, which was imposed following a 2022 settlement. The ban led to the relocation of Polymarket's main exchange overseas. The CFTC previously approved a separate, US-only Polymarket platform in November after the company acquired a registered exchange, although this site has not yet been fully launched. Prediction markets, which allow users to trade contracts tied to future events like elections, sports, or economic data, have faced increased 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 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. The development comes 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.