Polymarket seeks U.S. approval for margin trading as prediction markets gain momentum
Prediction market platform Polymarket is applying for regulatory approval to offer margin trading to U.S. customers, allowing users to take larger positions without needing to fully fund them upfront.
According to Bloomberg, Polymarket’s U.S. affiliate, Coming Home GBA LLC, has filed for a futures commission merchant (FCM) license with the National Futures Association. The company will also need authorization from the Commodity Futures Trading Commission (CFTC) to amend its trading rules and allow positions that are not fully collateralized.
Polymarket and competing platform Kalshi operate event-based prediction markets, where users can trade contracts tied to outcomes such as elections, sports events, and weather conditions. Margin trading, commonly used across traditional financial markets, allows participants to gain greater exposure by providing only a fraction of the total position value. Kalshi received approval to introduce margin trading features in March.
The application arrives as prediction markets continue to expand rapidly. Trading activity reached about $51 billion last year and is projected to approach $240 billion in 2026. Financial analysts at Bernstein believe the sector could eventually grow into a $1 trillion market by 2030 as these platforms evolve into broader information marketplaces covering politics, sports, cryptocurrency, and economic developments.
Polymarket’s latest regulatory effort follows a public relations campaign launched this week aimed at strengthening trust among regulators, policymakers, and potential users.
The company has previously faced regulatory challenges in the United States. In 2020, Polymarket agreed to halt access for U.S. users after settling with the CFTC for $1.4 million over allegations that it offered unregistered event-based derivative products.
Polymarket has not issued a public statement on the reported filing.
