CFTC is reportedly probing Polymarket again over US users on its offshore platform
The probe, part of a broader CFTC inquiry opened this year, is examining Polymarket's location controls and US advertising, according to people familiar with the matter. The CFTC and Polymarket declined to comment to Reuters.
By Jennifer Walsh ·
Why it matters: The reported probe reaches beyond Polymarket's past compliance to the US platform it began rolling out late last year, adding regulatory scrutiny for Polymarket.
For information only, not investment advice.
The Commodity Futures Trading Commission is investigating whether Polymarket broke a 2022 settlement in which it promised to keep US users off its main overseas platform, Reuters reported Tuesday, citing two people familiar with the matter. That revives an inquiry the agency shut last year without bringing charges.
Per Reuters' sources, the question is part of a broader probe the CFTC opened into Polymarket earlier this year. The agency is examining how Polymarket determines where customers are located and its US advertising, and is also scrutinizing its newer US platform, including customer onboarding and protections.
CNBC, which discloses a commercial relationship with Polymarket rival Kalshi, reported the probe citing one person familiar with it. That person said the inquiry concerns whether Polymarket previously broke the settlement and is unrelated to the platform's present operations.
Spokespeople for the CFTC and Polymarket declined to comment to Reuters. Polymarket has said it has revamped its controls and prohibits VPNs or similar tools to get around its geographic restrictions. As Reuters notes, probes are not necessarily an indication of wrongdoing.
The settlement dates to January 2022, when the CFTC fined Polymarket $1.4 million for offering event-based binary options without registering. On July 15, 2025, CEO Shayne Coplan said on X that the CFTC and Justice Department had closed their earlier probes, Reuters reported.
Sources
Tags: regulation · fintech