TLDR
- Polymarket has asked the CFTC to lift its ban on U.S. traders.
- The company held recent discussions with CFTC officials about restoring access.
- The trading restriction followed a 2022 settlement with the regulator.
- The CFTC must vote before Polymarket can reopen its main exchange to U.S. users.
- Chairman Michael Selig currently serves as the only sitting commissioner.
Polymarket has approached the Commodity Futures Trading Commission to restore access for U.S. traders to its main exchange. Bloomberg reported that company representatives held recent discussions with CFTC officials about lifting the existing ban. The restriction followed a 2022 settlement, and the regulator must vote before any change takes effect.
Polymarket Engages CFTC on U.S. Market Return
Polymarket has asked the CFTC to reconsider the block on U.S.-based users. Bloomberg cited sources who confirmed recent talks with agency officials. The company wants to reopen its primary exchange to domestic traders.
The platform restricted U.S. access after it settled with the CFTC in 2022. Under that agreement, Polymarket paid a civil penalty and shifted its main operations overseas. Since then, U.S. residents have not accessed the core international market.
The CFTC must vote to remove the trading ban. Four commission seats remain vacant, and Chairman Michael Selig currently serves as the only sitting commissioner. That structure could streamline the decision process if the agency advances the proposal.
Selig has previously stated that states cannot regulate prediction markets. He has argued that federal law grants oversight authority to the CFTC. He has not issued a new public comment on the current discussions.
Regulatory Background and Platform Developments
Polymarket operates prediction markets that allow users to trade contracts on future events. Traders speculate on elections, sports outcomes, and economic indicators. These contracts settle based on real-world results.
Several states have questioned whether such platforms operate as unlicensed gambling venues. State officials have raised concerns and have called for enforcement reviews. However, federal oversight of derivatives markets falls under the CFTC’s authority.
In November, the CFTC cleared a separate U.S.-only Polymarket platform. The approval followed the company’s acquisition of a registered exchange. That domestic site has not yet been launched to the public.
The company has not provided a launch date for the approved U.S. platform. It continues to operate its international exchange outside U.S. jurisdiction. Access restrictions remain in place for domestic traders.
Recent events have also drawn attention to the platform’s controls. Authorities accused a U.S. soldier of using a VPN to access the overseas exchange. Prosecutors allege the individual earned over $400,000 from trades linked to classified information.
Law enforcement officials outlined the allegations in court filings. They claim the accused used non-public information to place targeted bets. The case remains under review as the CFTC weighs Polymarket’s request to lift the U.S. trading block.