Polymarket Eyes Return to U.S. Market Through CFTC Registration Process

Prediction market platform Polymarket is pursuing regulatory approval from the Commodity Futures Trading Commission to allow American users back onto its primary platform, according to industry reports. The development marks a significant strategic shift for the decentralized prediction market, which has operated without U.S. participation since settling charges with the CFTC in 2022. At that time, Polymarket paid a $1.4 million fine and agreed to restrictions that effectively blocked domestic traders from accessing its markets. Should regulators greenlight the application, Polymarket would enter direct competition with Kalshi, the CFTC-regulated prediction market that currently dominates the compliant event contract space in America. Kalshi has established itself as the primary legal venue for Americans to trade on real-world events, from election outcomes to economic indicators. The potential approval would represent a notable expansion of regulated prediction market activity in the United States, bringing a major offshore platform under federal oversight. For Polymarket, regaining access to the lucrative U.S. market could dramatically increase liquidity and user engagement, given that American traders historically represented a substantial portion of prediction market participants. The platform gained widespread attention during the 2024 election cycle, when its markets processed billions in volume despite the U.S. trading restrictions. Market observers will be watching closely to see whether the CFTC grants approval and what specific regulatory conditions might be attached to Polymarket’s domestic operations.

Source: CoinDesk | This article has been independently rewritten by Block Digest. Original reporting credit to the source.

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