Polymarket Eyes US Return for Crypto Exchange as Lone CFTC Chair Weighs Approval
Polymarket, a leading on-chain prediction market, is seeking permission from the U.S. Commodity Futures Trading Commission (CFTC) to lift its ban on American users, imposed after a 2022 settlement for operating an unregistered platform. Polymarket paid a $1.4 million penalty, shuttered affected markets, and excluded U.S. residents. As interest in prediction markets has grown, the CFTC is now reconsidering its approach. Last year, the CFTC approved a Polymarket-linked U.S. platform focused on sports betting, but its main decentralized exchange remains inaccessible to Americans. CFTC Chair Michael Selig has recently advocated for regulated prediction markets and warned of risks if such activities move offshore. Due to vacant commissioner seats, Selig holds sole authority over the decision, raising concerns about over-centralized power and policy stability. If approved, Polymarket could become the first USDC-collateralized, on-chain exchange within U.S. federal derivatives regulation, expanding access for retail traders but increasing regulatory oversight. Critics warn the move could face future reversals and add uncertainty, especially with ongoing jurisdictional disputes and pending court rulings on prediction markets’ legal status.
