Polymarket Seeks CFTC Approval to Reopen Exchange for US Traders

Polymarket is pursuing approval from the Commodity Futures Trading Commission (CFTC) to relaunch its main prediction market platform for US users. According to sources, the company has been in discussions with CFTC officials to lift the ban on US-based traders, which was imposed following a 2022 settlement. The ban led to the platform's relocation overseas. Notably, the CFTC previously approved a separate US-only platform operated by Polymarket in November, after the company acquired a registered exchange. Prediction markets, which allow users to trade contracts tied to future events, have faced increased scrutiny from states claiming they operate as unlicensed gambling operations. The CFTC's approval process 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. 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.