Key facts
- Polymarket's U.S. affiliate, Coming Home GBA LLC, applied for a National Futures Association license.
- The application seeks approval to offer margin trading to U.S. customers.
- Polymarket also needs Commodity Futures Trading Commission (CFTC) authorization to change its rulebook.
- Margin trading allows users to trade with less upfront capital.
- Polymarket previously settled with the CFTC for $1.4 million and agreed to stop serving U.S. customers.
Prediction market platform Polymarket has taken a significant step toward re-entering the U.S. market by applying for a license to offer margin trading to its American customers. Polymarket's U.S. affiliate, Coming Home GBA LLC, submitted an application to the National Futures Association (NFA) for a futures commission merchant license. This move, if approved, would allow users to trade with less upfront capital, a practice common in traditional financial markets.
However, Polymarket also requires authorization from the Commodity Futures Trading Commission (CFTC) to modify its rulebook, which currently mandates fully collateralized positions. The company is actively engaging in a marketing campaign to assure policymakers and regulators of its trustworthiness, aiming to overcome past regulatory issues. Four years ago, Polymarket settled with the CFTC for $1.4 million, agreeing to cease serving U.S. customers due to allegations of offering unregistered event-based derivatives.
The application comes at a time of rapid growth for prediction markets. Volumes reached $51 billion last year and are projected to hit $240 billion in 2026, with some analysts predicting a rise to $1 trillion by 2030 as these platforms evolve into broader "information markets." Competitor Kalshi received approval for margin trading in March, indicating a potential shift in regulatory acceptance for such services.