Polymarket Moves Toward U.S. Margin Trading Approval With New Regulatory Push

Polymarket is seeking regulatory approval to introduce margin trading for U.S. customers, following a similar move by rival Kalshi earlier this year.

The prediction market platform has submitted an application to allow American users to open positions without providing full collateral upfront, Bloomberg reported Thursday.

Polymarket’s U.S. entity, Coming Home GBA LLC, filed for a futures commission merchant (FCM) license with the National Futures Association, according to a company representative cited by Bloomberg. The company would also need approval from the Commodity Futures Trading Commission (CFTC) to modify its rules and permit trading positions that are not fully collateralized.

Prediction markets such as Polymarket and Kalshi allow users to trade contracts based on the outcomes of real-world events, including elections, sports competitions, and weather developments. Margin trading, a common feature in traditional financial markets, enables traders to gain larger exposure by committing only a portion of the total position value. Kalshi received regulatory clearance to offer similar margin-based trading features in March.

The move comes as prediction markets experience rapid expansion. Trading volume reached approximately $51 billion last year and is projected to climb toward $240 billion in 2026. Analysts at Wall Street firm Bernstein recently forecast that the sector could grow into a $1 trillion market by 2030 as prediction platforms evolve from niche betting services into broader “information markets” covering areas such as politics, sports, crypto, and economic trends.

Polymarket’s regulatory push follows a public outreach campaign launched Wednesday aimed at building confidence among regulators, lawmakers, and potential users. The company previously agreed to stop offering services to U.S. customers in 2020 after reaching a $1.4 million settlement with the CFTC, which accused the platform of operating unregistered event-based derivatives markets.

Polymarket has not yet commented on the report.