Polymarket seeks regulatory approval for margin trading in United States

Polymarket is seeking regulatory approval to offer margin trading in the US, allowing users to bet on events with less capital upfront.

Objective Facts

Polymarket is seeking regulatory approval to offer margin trading in the US, a move that would let users bet on events with less capital upfront and help the prediction market platform attract more sophisticated traders. The company filed through its U.S. affiliate, Coming Home GBA LLC, for a futures commission merchant license with the National Futures Association on July 3, 2026. Polymarket will also need CFTC approval to change its rulebook so users can trade without fully collateralized positions. Rival Kalshi received its own futures commission merchant license earlier this year, allowing it to expand access to event contracts and support more complex products, including perpetual futures. The move comes as Polymarket returns to the U.S. after a four-year ban, having paid a $1.4 million settlement with the CFTC in 2022 for offering unregistered event-based derivatives. Meanwhile, the CFTC is conducting a broad probe into the company, with the investigation reportedly including Polymarket's social media activity after it hired dozens of mostly college-aged content creators to film themselves making staged trades and fake wins.

Deep Dive

Prediction markets are experiencing significant growth, with trading volumes hitting $51 billion last year and on pace to reach about $240 billion in 2026, with Wall Street analysts expecting volume to rise to $1 trillion by 2030 as the sector evolves from niche wagering into wide-based "information markets" spanning sports, crypto, politics and the economy. Margin trading enables traders to borrow and increase their position size without paying the full amount upfront, a tactic frequently used by institutional traders to improve capital efficiency. Polymarket's filing represents a strategic bid to match competitor Kalshi's regulatory standing and compete for institutional capital. The dual-approval structure—requiring both NFA registration and CFTC rulebook amendments—reflects the regulatory complexity of prediction markets, which the CFTC treats as commodity swaps rather than informal bets. The timing of Polymarket's FCM filing is delicate, as the CFTC is conducting a broad probe into the company that includes investigation of its social media activity after reports that the company hired dozens of mostly college-aged content creators to film themselves making staged trades and fake wins to drive users to its site. Additionally, while the expansion of margin trading could increase the risk of insider trading as regulators scrutinize the industry's ability to prevent suspicious activities, a high-profile case earlier this year charged an active US Army Special Forces soldier after he allegedly used classified information about the operation to capture Nicolas Maduro to turn roughly $33,000 in bets into more than $400,000 in profit on the platform. Under current US regulations, users trading margined prediction contracts would face enhanced identity verification requirements, including the provision of additional personal information, such as employer details. The next move sits with the CFTC, and its decision will determine whether Polymarket can catch up to Kalshi's lead in the coming months. If approved, the margin trading capability would enable Polymarket to offer leveraged event contracts comparable to traditional futures products, a capability its main competitor Kalshi already possesses. The approval process will also signal how strictly the CFTC intends to enforce compliance standards for prediction market platforms at a moment when insider trading concerns and marketing practices are under heightened scrutiny.

OBJ SPEAKING

Create StoryTimelinesVoter ToolsRegional AnalysisPolicy GuideAll StoriesCommunity PicksUSWorldPoliticsBusinessHealthEntertainmentTechnologyAbout

Polymarket seeks regulatory approval for margin trading in United States

Polymarket is seeking regulatory approval to offer margin trading in the US, allowing users to bet on events with less capital upfront.

Jul 10, 2026
What's Going On
  • Polymarket's U.S. affiliate, Coming Home GBA LLC, filed for a futures commission merchant license with the National Futures Association on July 3, 2026.
  • The company will also need CFTC approval to change its rulebook so users can trade without fully collateralized positions.
  • Kalshi received its own futures commission merchant license earlier this year, allowing it to expand access to event contracts and support more complex products, including perpetual futures.
  • Polymarket's move comes amid rapid growth in prediction markets as it returns to the U.S. after a four-year ban following a $1.4 million settlement with the CFTC for offering unregistered event-based derivatives.
  • The CFTC is conducting a broad probe into the company, and the investigation reportedly includes Polymarket's social media activity after the company hired dozens of mostly college-aged content creators to film themselves making staged trades and fake wins.
Objective Deep Dive

Prediction markets are experiencing significant growth, with trading volumes hitting $51 billion last year and on pace to reach about $240 billion in 2026, with Wall Street analysts expecting volume to rise to $1 trillion by 2030 as the sector evolves from niche wagering into wide-based "information markets" spanning sports, crypto, politics and the economy. Margin trading enables traders to borrow and increase their position size without paying the full amount upfront, a tactic frequently used by institutional traders to improve capital efficiency. Polymarket's filing represents a strategic bid to match competitor Kalshi's regulatory standing and compete for institutional capital. The dual-approval structure—requiring both NFA registration and CFTC rulebook amendments—reflects the regulatory complexity of prediction markets, which the CFTC treats as commodity swaps rather than informal bets.

The timing of Polymarket's FCM filing is delicate, as the CFTC is conducting a broad probe into the company that includes investigation of its social media activity after reports that the company hired dozens of mostly college-aged content creators to film themselves making staged trades and fake wins to drive users to its site. Additionally, while the expansion of margin trading could increase the risk of insider trading as regulators scrutinize the industry's ability to prevent suspicious activities, a high-profile case earlier this year charged an active US Army Special Forces soldier after he allegedly used classified information about the operation to capture Nicolas Maduro to turn roughly $33,000 in bets into more than $400,000 in profit on the platform. Under current US regulations, users trading margined prediction contracts would face enhanced identity verification requirements, including the provision of additional personal information, such as employer details.

The next move sits with the CFTC, and its decision will determine whether Polymarket can catch up to Kalshi's lead in the coming months. If approved, the margin trading capability would enable Polymarket to offer leveraged event contracts comparable to traditional futures products, a capability its main competitor Kalshi already possesses. The approval process will also signal how strictly the CFTC intends to enforce compliance standards for prediction market platforms at a moment when insider trading concerns and marketing practices are under heightened scrutiny.