Key Takeaways
- Polymarket is negotiating with the CFTC to reverse restrictions on U.S. users imposed through a 2022 settlement agreement
- The platform paid $1.4 million in penalties three years ago and relocated its primary operations outside U.S. jurisdiction
- The company purchased QCX LLC for approximately $112 million in 2025 to establish a compliant domestic presence
- Intercontinental Exchange provided up to $2 billion in funding, establishing an $8 billion valuation for Polymarket
- Regulatory clearance would create direct market rivalry between Polymarket and existing competitor Kalshi
Polymarket has entered substantive negotiations with the Commodity Futures Trading Commission aimed at reversing restrictions that have prevented American traders from accessing its flagship prediction market platform since 2022.
JUST IN: ⚡ Polymarket is seeking CFTC approval to let US users trade on its main exchange after being blocked since 2022, per Bloomberg. pic.twitter.com/uWxNte1O3J
— CoinMarketCap (@CoinMarketCap) April 28, 2026
Bloomberg first disclosed these ongoing negotiations, according to sources with knowledge of the situation. The company’s objective is to restore direct access for U.S. customers to its primary offshore, blockchain-powered trading platform.
The current restrictions originated from a 2022 regulatory enforcement proceeding. The CFTC brought charges against Polymarket, operating then under the name Blockratize Inc., for providing unregistered event-based contracts to American customers without securing necessary regulatory clearances. The resolution included a $1.4 million civil monetary penalty and a commitment to prohibit U.S. traders from platform participation.
Prediction markets enable participants to trade derivative contracts based on outcomes of future events including political elections, sporting competitions, and economic indicators. These markets have gained substantial momentum while simultaneously drawing regulatory examination from state authorities who argue they function as unauthorized gambling operations.
Following the 2022 settlement agreement, Polymarket maintained its ambition to establish a U.S. presence. In July 2025, the platform completed the acquisition of QCX LLC, a CFTC-registered derivatives marketplace and clearing facility, in a transaction valued near $112 million.
QCX underwent rebranding as Polymarket US, providing American participants with a regulatory-compliant access route via licensed brokerage firms. The CFTC subsequently issued a modified order in late 2025 authorizing restricted access for domestic users.
Limited Domestic Platform Falls Short of Main Exchange Performance
Polymarket introduced a soft-launch domestic iteration concentrating on sporting events and selected other markets. However, trading activity on this compliant platform has fallen considerably short of the volume and liquidity present on the primary offshore exchange.
This performance disparity seems to be motivating the present effort to fully consolidate the offshore trading venue with the domestically-registered QCX licensing structure, possibly operating within a unified regulatory architecture.
The company has secured substantial institutional capital. Intercontinental Exchange, which operates the New York Stock Exchange, committed a strategic investment reaching $2 billion in Polymarket, establishing a company valuation near $8 billion. Additionally, Polymarket maintains a data-sharing arrangement with Dow Jones.
Final regulatory approval requires a commissioner vote at the CFTC. The agency presently has just one active commissioner, Chair Michael Selig, with multiple positions unfilled. This circumstance might streamline the approval pathway, although certain legislators have expressed apprehension about consequential decisions being made with such limited commissioner representation.
Selig has publicly maintained that state authorities lack jurisdiction over prediction markets, asserting that regulatory authority belongs exclusively to the CFTC.
Recent Insider Trading Incident Complicates Regulatory Picture
These regulatory discussions proceed against the backdrop of a recent insider trading prosecution involving the platform. Federal authorities accused a military service member of circumventing geographic restrictions using VPN technology to access Polymarket’s international platform, allegedly profiting over $400,000 through trades informed by classified intelligence.
The CFTC has additionally initiated legal proceedings against New York and Illinois regarding state-level regulatory initiatives targeting prediction markets, reaffirming federal jurisdictional claims.
Should regulators grant approval, a fully licensed U.S. trading venue would establish Polymarket as a direct market competitor to Kalshi, which currently operates as the only CFTC-regulated event contract marketplace serving American customers.
Representatives from both Polymarket and the CFTC declined to provide statements regarding the ongoing negotiations.
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