Polymarket Pushes for CFTC Green Light to Resume U.S. Operations Following 2022 Ban

Table of Contents Polymarket has entered ongoing negotiations with the Commodity Futures Trading Commission to eliminate restrictions that have prevented U.S. participants from accessing its principal prediction market platform 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 According to Bloomberg sources with knowledge of the situation, these discussions represent Polymarket’s effort to reconnect American traders with its flagship offshore, blockchain-powered exchange. The trading prohibition originated from regulatory enforcement in 2022. The CFTC brought charges against Polymarket, operating at the time as Blockratize Inc., for providing unregistered event-based contracts to American participants without securing necessary regulatory permissions. The resolution included a $1.4 million civil monetary penalty and a commitment to exclude U.S.-based traders from the service. Prediction market platforms enable participants to trade contracts linked to upcoming events including political outcomes, athletic competitions, and economic indicators. These platforms have gained substantial attention while simultaneously facing examination from state authorities who contend they function as unregulated wagering operations. Following the 2022 resolution, Polymarket continued pursuing domestic market entry. In July 2025, the organization purchased QCX LLC, a federally registered derivatives marketplace and clearinghouse, in a transaction valued near $112 million. QCX underwent rebranding as Polymarket US. This acquisition provided American participants with a regulatory-compliant pathway to the platform via authorized brokerage firms. The CFTC granted a modified directive in late 2025 permitting restricted access for domestic users. Polymarket introduced a preliminary domestic version concentrating on athletic events and selected markets. However, transaction activity on this domestic platform has fallen significantly short of the volume and market depth achieved by the international exchange. This disparity seems to be motivating the present effort to fully merge the offshore operations with the domestically registered QCX authorizations, possibly under unified regulatory oversight. Polymarket has secured substantial institutional capital. Intercontinental Exchange, which owns the New York Stock Exchange, committed a strategic investment reaching $2 billion in Polymarket. This investment establishes the company’s valuation near $8 billion. The platform has additionally formed a data collaboration with Dow Jones. Formal authorization would necessitate a vote among CFTC commissioners. The regulatory body presently has just one active commissioner, Chair Michael Selig, with multiple positions unfilled. This situation might streamline the authorization procedure, although certain legislators have voiced apprehension about determinations made with such limited commissioner representation. Selig has previously contended that state governments lack jurisdiction over prediction markets, maintaining that authority resides with the CFTC. These negotiations follow a recent insider trading incident on the platform. A military service member faced accusations of utilizing VPN technology to access Polymarket’s international platform and generating more than $400,000 through trades informed by confidential government information. The CFTC has additionally initiated legal action against New York and Illinois regarding state regulatory efforts targeting prediction markets, claiming exclusive federal authority. With approval, a fully functional domestic exchange would establish Polymarket as a direct competitor to Kalshi, which currently operates as a CFTC-regulated event contract marketplace within the United States. Both Polymarket and the CFTC declined to provide statements regarding the ongoing discussions. Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.