Polymarket Seeks CFTC Approval for Full US Market Re-entry

Polymarket is engaging in discussions with the Commodity Futures Trading Commission (CFTC) to restore full access for US-based customers. The platform is seeking to overturn restrictions imposed during a 2022 settlement, which required the company to block American users and pay a $1.4 million civil penalty for offering unregistered event contracts. While Polymarket launched a limited, waitlist-only US app in December 2025 focused exclusively on sports contracts, its primary international exchange remains inaccessible to US residents. A full return would require a formal commission vote, a process that may be streamlined due to current vacancies among the CFTC commissioners. The push for US access follows a decline in market dominance. Although Polymarket held over 90% of monthly notional volume in November 2024, it has lost significant ground to rival Kalshi since September 2025. Kalshi has established a stronger domestic presence and a strategic partnership as a market provider for Coinbase. However, the regulatory path remains fraught with legal headwinds. On April 23, Wisconsin officials filed a lawsuit against Polymarket, Kalshi, Coinbase, and Robinhood, alleging the facilitation of illegal sports betting through event contracts. Additionally, the Justice Department recently accused a US soldier of using a VPN to bypass restrictions and profit over $400,000 via insider information on the platform.