CFTC Investigates Polymarket for Alleged 2022 Settlement Violations

The Commodity Futures Trading Commission is re-examining Polymarket for potentially violating its 2022 enforcement settlement, which barred the platform from allowing Americans to trade event-based binary options without registration. The probe, revived after being closed in 2025 without charges, focuses on the adequacy of Polymarket's location controls, its U.S. advertising, and customer protections on its domestic platform. Despite geofencing measures, regulators and critics note that users have accessed the site via VPNs. The investigation underscores ongoing regulatory scrutiny as Polymarket expands its user base and trading volume.