Polymarket Seeks CFTC Approval to Restore Access for U.S. Traders

Prediction market platform Polymarket is reportedly seeking approval from the Commodity Futures Trading Commission (CFTC) to allow U.S.-based users to access its main international exchange once again. The restriction has been in place since a 2022 settlement with regulators that forced the company to block U.S. traders and shift its primary operations overseas.

Recent discussions between Polymarket and CFTC officials signal an effort to reverse that limitation. If approved, the move would allow the platform to compete more directly with U.S.-regulated rivals such as Kalshi, while bringing a larger portion of event-based trading activity under federal regulatory oversight.

Regulatory Process and Prior Platform Developments

The CFTC previously cleared a separate U.S.-only version of Polymarket in November after the company acquired a registered exchange. However, that platform has not yet fully launched. Any decision to remove the U.S. block from the main exchange would require a formal vote by the commission.

The approval process may be less complicated than usual, as four CFTC commissioner seats are currently vacant, leaving Chairman Michael Selig as the only sitting commissioner. Selig has previously argued that regulation of prediction markets falls under federal authority rather than state oversight.

Insider Trading Case Adds Scrutiny to Platform

The discussions also follow a high-profile enforcement case involving allegations that a U.S. soldier used a Virtual Private Network (VPN) to bypass geographic restrictions and access Polymarket’s international platform. Authorities claim the individual generated more than $400,000 in profits by trading on classified information.

Prediction markets allow users to trade contracts tied to future outcomes, including elections, sports events and economic indicators. While their popularity has grown, several U.S. states have raised concerns that such markets resemble unlicensed gambling operations, increasing pressure for stronger federal regulation.