Polymarket is seeking approval from the U.S. Commodity Futures Trading Commission (CFTC) to allow U.S.-based users back onto its main prediction market platform, CoinDesk reported, citing a Bloomberg report.

Polymarket has blocked U.S. traders since a 2022 settlement with the CFTC, after which the platform moved its main exchange overseas. CoinDesk noted that the company received CFTC clearance for a separate U.S.-only platform last November after acquiring a registered exchange, though that regulated product has not fully launched.

Prediction markets let users trade contracts tied to outcomes ranging from elections to sports and economic data. The sector has faced rising scrutiny at the state level, where officials argue some offerings resemble unlicensed gambling. Polymarket’s potential return could also increase head-to-head competition with U.S.-focused prediction market operator Kalshi.

CoinDesk reported the CFTC would need to vote to remove Polymarket’s U.S. block. The process may be complicated by vacancies at the commission, with Chairman Michael Selig currently the only sitting commissioner.

The talks come as regulators and law enforcement increasingly focus on compliance issues related to prediction markets, including allegations that some users accessed offshore platforms using VPNs.

If the CFTC ultimately signs off on a broader U.S. reopening, the move could shift more event-contract activity into a clearer federal regulatory framework—while intensifying the ongoing jurisdictional debate between federal regulators and state authorities.