Polymarket Seeks CFTC Approval to Reopen Platform to US Traders

Polymarket is pursuing Commodity Futures Trading Commission (CFTC) approval to relaunch its main prediction market for US users. Recent discussions between the company and CFTC officials, as reported by Bloomberg, indicate a potential lift of the US trader ban imposed since 2022. The ban was a result of a settlement with the CFTC, leading to the platform's relocation overseas. A separate US-only platform, cleared by the CFTC last November, is pending full launch. Prediction markets, which allow trading on future events like elections and sports, have faced increased scrutiny over unlicensed gambling concerns. The CFTC must vote to remove the US block, a process potentially simplified by current commission vacancies. Chairman Michael Selig has previously argued that states lack authority over prediction markets, which fall under CFTC jurisdiction. The development follows a case where a soldier allegedly used 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.