Polymarket Asks CFTC To Let Its Main Platform Return to the US

Polymarket is currently the largest on-chain prediction market with a total value locked (TVL) of $488mn.

If its request is approved, Polymarket, which operates on the Polygon network, could bring its main platform back to the US, enabling direct on-chain trading. For now, American users are limited to Polymarket US, which conducts trades through licensed intermediaries.

Polymarket's main platform has been banned for US traders since 2022 over operating without proper regulatory licenses. Ultimately, it settled with the CFTC and moved its main platform overseas. 

"If [Polymarket] secures CFTC alignment, you’re not just reopening access, you’re unlocking US liquidity, which could rapidly elevate this into a new, globally relevant asset class," Jason Rindahl, CEO at Nebula DeFi, told Sandmark.

However, Rindahl cautioned that what makes these markets powerful also creates "real risks around manipulation and information asymmetry." 

He said that in the long run, the question isn’t whether prediction markets are successful, it’s "whether they get shaped into regulated forecasting tools or constrained as just another form of online betting.”

Growing Scrutiny

Polymarket's request comes as prediction markets continue to face rising scrutiny from regulators, particularly at the state level. 

Some states argue that platforms like Polymarket and its main rival Kalshi are offering, in effect, venues for unlicensed gambling.

For its part, the CFTC claims that these markets fall under federal oversight. Kalshi is currently the only fully regulated prediction market platform in the US.

"The CFTC will no longer sit idly by while overzealous state governments undermine the agency’s exclusive jurisdiction over these markets by seeking to establish statewide prohibitions on these exciting products,” CFTC Chairman Mike Selig said at the time.

The rise of prediction markets

The move also comes as the prediction market sector continues to grow. As of 28 Apr, on-chain prediction markets boast $530mn in TVL – up sharply from the $150mn recorded in April 2025. Meanwhile, more than $2.7bn was recorded in trading volume over the past week, according to DeFiLlama.

Polymarket is one of the largest with about $4.5bn in trading volume over the past 30 days and close to $300mn in annualized revenue. Open interest (OI) is currently hovering at around $500mn.

Kalshi is currently larger by volume, with around $1.4bn in weekly trading and roughly $5.3bn over the past 30 days, per DeFiLlama. 

Polymarket's latest moves

A return to the US would add to Polymarket’s recent momentum, as the platform continues to expand its reach.

Earlier this year, it launched an app in the US-serving App Store, allowing Americans to place prediction bets from their phones, starting with sports markets. 

Institutional interest is also growing. Last year, the Intercontinental Exchange (ICE), parent company of the New York Stock Exchange (NYSE), announced it would invest up to $2bn in Polymarket. 

As part of the deal, ICE would distribute Polymarket's data to institutional investors, giving them access to insights from the platform’s markets.