Polymarket seeks CFTC approval to reopen main exchange to U.S. traders
If approved, the move would help Polymarket compete with Kalshi in the U.S. and bring more event-trading activity under CFTC regulatory oversight.
What to know:
- Polymarket is seeking CFTC approval to lift the ban on U.S. users from its main, overseas prediction market, a restriction stemming from a 2022 settlement.
- If approved, the move would help Polymarket compete with Kalshi in the U.S. and bring more event-trading activity under CFTC regulatory oversight.
- The CFTC must vote on the matter, a process simplified by four vacant seats. The talks also follow a high-profile insider trading case on the platform.
The CFTC cleared a separate U.S.-only Polymarket platform last November after the company acquired a registered exchange. That site has yet to fully launch.
Prediction markets let users trade contracts tied to future events, such as elections, sports games or economic data. These markets have drawn increasing scrutiny from various states, which argue these function as unlicensed gambling operations.
The CFTC would need to vote before it could remove Polymarkt’s U.S. block. That process may be simpler now because four commission seats are vacant, leaving Chairman Michael Selig as the only sitting commissioner.
Selig has in the past defended that states do not have the ability to police prediction markets, whose authority falls under the CFTC’s purview.
