Polymarket Seeks CFTC Approval to Reopen Main Platform to US Traders

Polymarket is currently in the process of obtaining approval from the Commodity Futures Trading Commission (CFTC) to relaunch its primary prediction market for US users. According to sources, the company has been engaged in discussions with CFTC officials over the past few weeks to lift the ban on US-based traders, which was initially imposed following a 2022 settlement. The CFTC had previously approved a separate US-only platform operated by Polymarket in November, but 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 increased scrutiny from states that argue these markets function as unlicensed gambling operations. The CFTC would need to hold a vote to remove the US block, a process that may be simplified due to the current vacancy of four commission seats. Chairman Michael Selig has previously stated that states lack the authority to regulate prediction markets, which fall under the CFTC's jurisdiction. The talks come on the heels of a recent incident in which a soldier was accused of using a VPN to access Polymarket's international exchange and earn over $400,000 from trades based on classified information. Polymarket has declined to comment on the matter.