Polymarket Seeks CFTC Approval to Lift U.S. Trading Ban After 2022 Settlement

TLDR

Polymarket is in talks with the CFTC to lift its ban on U.S. traders, in place since a 2022 settlement The company paid a $1.4 million penalty in 2022 and moved its main exchange offshore In 2025, Polymarket acquired QCX LLC for ~$112 million to create a regulated U.S. platform ICE invested up to $2 billion in Polymarket, valuing it at around $8 billion Approval could put Polymarket in direct competition with Kalshi in the U.S. market

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Polymarket is in active talks with the Commodity Futures Trading Commission to remove a ban that has blocked U.S. traders from its main prediction market since 2022.

JUST IN: Polymarket is seeking CFTC approval to let US users trade on its main exchange after being blocked since 2022, per Bloomberg. pic.twitter.com/uWxNte1O3J

— CoinMarketCap (@CoinMarketCap) April 28, 2026

The discussions were reported by Bloomberg, citing people familiar with the matter. Polymarket wants to bring its primary offshore, blockchain-based exchange back to American users directly.

The ban stems from a 2022 enforcement action. The CFTC charged Polymarket, then known as Blockratize Inc., with offering unregistered event contracts to U.S. users without proper regulatory approvals. The company settled by paying a $1.4 million civil penalty and agreed to block American traders from the platform.

Prediction markets let users trade contracts tied to future events like elections, sports, and economic data. They have attracted growing interest but also scrutiny from states that say they operate like unlicensed gambling.

After the 2022 settlement, Polymarket did not stop trying to enter the U.S. market. In July 2025, the company acquired QCX LLC, a CFTC-registered derivatives exchange and clearinghouse, for around $112 million.

QCX was rebranded as Polymarket US. It gave American traders a compliant way to access the platform through licensed brokerages. The CFTC issued an amended order in late 2025 to allow limited access for U.S. users.

A Domestic Platform That Has Not Matched the Main Exchange

Polymarket soft-launched a domestic version focused on sports and select events. But trading volumes on that platform have not matched the scale or liquidity of the main offshore exchange.

That gap appears to be driving the current push to fully integrate the offshore exchange with the U.S.-registered QCX licenses, potentially under one regulatory framework.

Polymarket has attracted major financial backing. Intercontinental Exchange, the parent company of the New York Stock Exchange, made a strategic investment of up to $2 billion in Polymarket. That values the company at roughly $8 billion. Polymarket also has a data partnership with Dow Jones.

Any formal approval would require a vote from CFTC commissioners. The agency currently has only one sitting commissioner, Chair Michael Selig, with several seats vacant. That could simplify the approval process, though some lawmakers have raised concerns about decisions being made with so few commissioners in place.

Selig has previously argued that states do not have authority over prediction markets, placing jurisdiction with the CFTC.

Insider Trading Case Adds Complexity

The talks come after a recent insider trading case on the platform. A U.S. soldier was accused of using a VPN to access Polymarket’s international exchange and make over $400,000 from trades based on classified information.

The CFTC has also filed suits against New York and Illinois over state attempts to regulate prediction markets, asserting federal jurisdiction.

If approved, a fully operational U.S. exchange would put Polymarket in direct competition with Kalshi, which already operates as a CFTC-regulated event contract market in the United States.

Neither Polymarket nor the CFTC commented on the discussions.

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