TLDR
- Polymarket has discussed US trader access with CFTC officials.
- The main exchange has barred US users since a 2022 settlement.
- CFTC approval would require a formal commission vote.
- Polymarket US remains in beta with limited trading activity.
- Regulators recently cited VPN use by a US trader on Polymarket.
Polymarket is seeking CFTC approval to reopen its main exchange to US traders, according to people familiar with the matter. The move could return American users to its main prediction market platform. The company has discussed lifting its US ban with officials, but approval is not certain and would need formal action from the regulator.
CFTC Talks Focus on US Access
Polymarket has held recent talks with the Commodity Futures Trading Commission about allowing US-based customers on its main exchange. The discussions were described by people familiar with the matter, who spoke anonymously because the talks are private.
The platform has technically blocked American traders since 2022. That year, Polymarket reached a settlement with the CFTC and moved its main exchange overseas. Since then, US users have been barred from trading on the international platform. It remains unclear whether the CFTC will approve the request.
Removing the ban would require a formal vote by the commission. The process may be easier because four commission seats are vacant, leaving Chairman Michael Selig as the only member. Polymarket declined to comment on the matter. A CFTC spokesperson also did not respond to requests for comment, according to the report.
Polymarket Seeks Regulated Return
Polymarket has become one of the best-known prediction market platforms. Yet its US position weakened after the 2022 settlement. Rival Kalshi gained ground as prediction markets drew more attention under the Trump administration. The report said some talks include merging the main exchange’s blockchain-based systems with domestic licenses.
This could allow the company to operate through blockchain technology while using its US regulatory structure. Polymarket US, the company’s federally regulated domestic exchange, remains in beta mode. It is not crypto-native and has seen limited trading. Its current focus is mainly sports markets.
The US platform has also signaled plans to expand into other markets. These may include climate, crypto, and election-related contracts. The future of Polymarket US is unclear if the main exchange gets approval for US access.
Regulators Watch Prediction Markets
Regulators continue to watch prediction markets as more trading moves through online platforms. The CFTC and Justice Department recently accused US soldier Gannon Ken Van Dyke of using classified information to make more than $400,000 on Polymarket’s international exchange. Authorities said Van Dyke accessed the platform through a virtual private network.
Polymarket founder Shayne Coplan said the firm referred the suspicious trading to authorities. The case showed that some US traders have tried to bypass the ban. It also raised questions about enforcement and oversight in prediction markets that operate outside the United States. Selig has said he wants more prediction market activity under agency supervision.
“To the extent that there are products available that are taking liquidity out of the United States, we’re going to make sure that we bring that back here into the United States under comprehensive regulation,” he told lawmakers on April 16. The talks now place Polymarket’s US return before the CFTC. A decision could shape how the platform serves American traders and how prediction markets operate under federal rules.
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