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 US-based users. The company has been in talks with CFTC officials to lift the ban on US traders, which was imposed after a 2022 settlement. If approved, this move would allow Polymarket to re-enter the US market and compete with rivals like Kalshi. The CFTC had previously cleared a separate US-only platform operated by Polymarket, which has yet to launch. Prediction markets, which allow users to trade contracts tied to future events, have faced increased scrutiny from states that argue they function as unlicensed gambling operations. The CFTC's decision would require a vote, and with four commission seats currently vacant, Chairman Michael Selig's stance on the issue may carry significant weight. 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 recent incident in which a soldier was accused of using a VPN to access Polymarket's international exchange and make trades based on classified information, resulting in over $400,000 in profits. Polymarket has declined to comment on the matter.