Polymarket Seeks CFTC Approval to Reopen Main Exchange to US

Polymarket is currently seeking approval from the Commodity Futures Trading Commission (CFTC) to lift its long-standing ban on U.S.-based traders accessing its primary international prediction market [3]. This move follows a 2022 settlement with the agency that forced the platform to move its main exchange overseas, though the company has since acquired a registered exchange to operate a separate, CFTC-approved platform for the U.S. market [3].

Key takeaways

• Polymarket is in discussions with the CFTC to allow U.S. users to access its main overseas exchange [3].
• The platform currently operates a separate, CFTC-approved U.S. product that requires identity verification and specific funding methods [1].
• Competition in the U.S. prediction market has intensified, with rival platform Kalshi gaining market share since September 2025 [2].
• Both Polymarket and Kalshi face ongoing legal scrutiny, including a lawsuit from Wisconsin officials alleging the platforms facilitate illegal sports betting [2].

Navigating the U.S. Regulatory Landscape

The current U.S.-only version of Polymarket operates under a regulated framework that differs significantly from its global counterpart [1]. Users on the domestic platform must complete a Know Your Customer (KYC) process, which requires a government-issued photo ID and potentially a live selfie, with verification typically taking 24 to 48 hours [1]. Funding this account has been a noted friction point, as standard credit and debit cards are often unreliable; instead, the platform supports Apple Pay and USDC transfers, the latter of which are converted into a native collateral token called pUSD [1].

While Polymarket works to expand its U.S. footprint, it faces significant headwinds. The platform has seen its market share decline relative to its competitor, Kalshi, which has become a leading local provider and an official market partner for Coinbase [2]. Furthermore, the industry is under pressure from state-level authorities. In April 2026, Wisconsin’s top law enforcement official filed a lawsuit against both Polymarket and Kalshi, claiming their "event contracts" function as illegal sports betting [2]. These regulatory challenges are compounded by high-profile incidents, such as the recent case involving a U.S. soldier accused of using a VPN to access the international exchange to trade on classified information [2].

Why it matters

The outcome of the current talks with the CFTC could fundamentally change how U.S. users interact with prediction markets. If the agency votes to approve the request, it would allow Polymarket to bring its main exchange back to the U.S., potentially simplifying the user experience and increasing competition with Kalshi [3]. However, the path forward remains complex. The CFTC must hold a vote to authorize the change, and the broader sector continues to face intense scrutiny from state officials who characterize these markets as unlicensed gambling operations [3]. As the infrastructure evolves, the platform’s ability to balance regulatory compliance with user accessibility will determine its future standing in the U.S. market [1].