According to Bloomberg, Polymarket has begun the process of applying for a Futures Commission Merchant (FCM) license, which would pave the way for launching margin trading in the United States. Before bringing the product to market, the company must also secure CFTC approval for changes to the platform’s rules.
If regulators approve the application, Polymarket will be able to introduce margin trading, allowing users to open positions without providing the full amount of their own funds. This type of product is primarily used by professional traders and institutional investors, so the company hopes to expand beyond the retail audience that has generated most of the platform’s trading volume to date.
Regulatory Restrictions
Margin trading in the U.S. comes with stricter user identification requirements, including the disclosure of employer information. These rules are in place as regulators increase oversight of the prediction contracts market, paying particular attention to the potential use of insider information.
Kalshi previously obtained an FCM license and is also expanding its lineup of regulated products for trading prediction contracts.