The US Commodity Futures Trading Commission (CFTC) has renewed its investigation into Polymarket, examining whether the prediction market operator breached a 2022 settlement restricting American access to its offshore platform.
According to Reuters, investigators are reviewing the company’s geographic restrictions, US advertising activities, and compliance procedures. The inquiry also examines customer onboarding and safeguards on Polymarket’s newer US platform.
Geolocation Controls Face Renewed Regulatory Scrutiny
Polymarket agreed to exclude US users under its 2022 settlement with the CFTC. However, growing election-related activity in 2024 raised concerns about whether Americans could bypass those restrictions.
The agency and Justice Department closed similar investigations in July 2025 without filing charges. Nevertheless, the renewed scrutiny raises questions about the effectiveness of Polymarket’s compliance measures.
Polymarket prohibits virtual private networks (VPNs) used to evade geographic restrictions. Additionally, the company says it monitors suspicious activity and blocks restricted users from its offshore platform.
US Expansion Adds Regulatory Pressure
The investigation also covers Polymarket’s US operations, which expanded after the company acquired a CFTC-licensed derivatives exchange in 2025. Consequently, regulators are examining customer protections and procedures governing access to the domestic platform.
Moreover, concerns about insider trading have intensified as prediction markets attract greater participation. In April 2026, US authorities charged a soldier over alleged insider bets on Polymarket.
Both Polymarket and the CFTC declined to comment on the latest investigation. However, the probe does not establish wrongdoing or guarantee enforcement action.
Related: Lummis Accuses Democrats of Blocking Crypto Safeguards in CLARITY Act
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
