Polymarket Reportedly Seeking CFTC Approval to Reopen U.S. Exchange

Polymarket is negotiating with the Commodity Futures Trading Commission to lift its ban on U.S. traders, which has been in place since a 2022 settlement that forced the prediction market platform overseas. The company has discussed the matter with CFTC officials in recent weeks and previously received clearance for a separate U.S.-only platform in November 2025 that has not yet fully launched. Approval would require a CFTC vote, but four of five commission seats remain vacant with only Chairman Michael Selig serving, complicating the timeline. The move comes amid escalating jurisdictional battles between the CFTC and states like Wisconsin and New York, which argue prediction markets function as unlicensed gambling operations, while Selig maintains federal authority over the sector. Polymarket's U.S. reentry would enable direct competition with domestic rival Kalshi, and follows controversy over a soldier who allegedly used a VPN to make over $400,000 trading on classified information on Polymarket's international exchange.

Polymarket's Pursuit of CFTC Approval for U.S. Market Reentry

• ▪Polymarket has discussed lifting its ban on U.S.-based traders with CFTC officials in recent weeks as of April 28, 2026
• ▪Polymarket moved its main exchange overseas following a 2022 settlement with the CFTC
• ▪Polymarket's ban on U.S.-based traders has been in place since Polymarket reached a 2022 settlement with the CFTC
• ▪The CFTC cleared a separate U.S.-only Polymarket platform in November 2025 after Polymarket acquired a registered exchange
• ▪If approved, Polymarket's U.S. reentry would help Polymarket compete with Kalshi in the U.S.
• ▪Polymarket is seeking approval from the Commodity Futures Trading Commission to bring its main prediction market back to U.S. users
• ▪Polymarket's separate U.S.-only platform has not fully launched as of April 28, 2026

Regulatory Landscape and Jurisdictional Disputes

• ▪Wisconsin sued several prediction market businesses last week as of April 28, 2026
• ▪CFTC Chairman Michael Selig has defended that states do not have the ability to police prediction markets
• ▪Wisconsin has become the latest state sued by the U.S. Commodity Futures Trading Commission in a fight over prediction market jurisdiction
• ▪The U.S. Commodity Futures Trading Commission sued New York over event-contract jurisdiction
• ▪The U.S. Commodity Futures Trading Commission added Wisconsin to the list of states it has sued over event-contract jurisdiction
• ▪The CFTC would need to vote before removing Polymarket's U.S. block
• ▪CFTC Chairman Michael Selig has stated that prediction market authority falls under the CFTC's purview
• ▪Four CFTC commission seats are vacant as of April 28, 2026, leaving Chairman Michael Selig as the only sitting commissioner

Security Concerns and Enforcement Challenges

• ▪Authorities accused a soldier of using a Virtual Private Network to access Polymarket's international exchange
• ▪A soldier made more than $400,000 from trades on Polymarket's international exchange based on classified information

Perspective of CFTC Chairman Michael Selig

• ▪CFTC Chairman Michael Selig opposes state-level attempts to regulate prediction markets as gambling operations
• ▪CFTC Chairman Michael Selig views prediction market regulation as exclusively within federal CFTC authority rather than state jurisdiction

Perspective of Various U.S. states including Wisconsin and New York

• ▪States including Wisconsin and New York are challenging federal CFTC claims of exclusive jurisdiction over prediction markets through lawsuits