According to Bloomberg, Polymarket is in discussions with the Commodity Futures Trading Commission (CFTC) to lift its ban on U.S.-based users and reopen its primary prediction market. The ban was implemented following a settlement with the CFTC in 2022, leading the company to relocate its main exchange outside of the U.S.
In recent weeks, Polymarket has engaged with CFTC officials regarding this potential change, Bloomberg reported on Tuesday, citing sources familiar with these discussions. Additionally, last November, the CFTC approved a separate U.S.-only platform for Polymarket after it acquired a registered exchange, although that site hasn’t launched yet.
These prediction markets allow users to trade contracts based on anticipated future events such as elections, sports games, and economic data. However, they have faced increasing scrutiny from states that consider them unlicensed gambling operations.
For the U.S. ban on Polymarket to be lifted, a vote by the CFTC is required. Currently, this process might be expedited due to four vacant seats on the commission, leaving only Chairman Michael Selig as the sole sitting commissioner. Previously, Selig has argued that states do not have jurisdiction over prediction markets, which are under the CFTC’s authority.
The discussions occur in the aftermath of a case where authorities accused a soldier of accessing Polymarket’s international platform via a VPN to make trades worth more than $400,000 using classified information. Polymarket has opted not to comment on these matters.