Polymarket is pursuing regulatory approval to offer margin trading to U.S. users, a move that would allow traders to take larger positions with less upfront collateral.
The prediction market platform has applied for permission to introduce partially collateralized trading for American customers, according to a Bloomberg report published Thursday.
Polymarket’s U.S. affiliate, Coming Home GBA LLC, submitted an application for a futures commission merchant (FCM) license with the National Futures Association, Bloomberg reported, citing a company representative. In addition, the platform would need approval from the Commodity Futures Trading Commission (CFTC) to update its rules and enable users to trade positions that are not fully backed by collateral.
Prediction markets such as Polymarket and Kalshi allow participants to speculate on the outcomes of real-world events, including elections, sporting events, and weather conditions. Margin trading, which is widely used in traditional finance, allows traders to control larger positions by committing only a portion of the total value. Rival platform Kalshi received approval to provide margin trading services in March.
Polymarket’s application comes as interest in prediction markets continues to accelerate. The sector generated around $51 billion in trading volume last year and is expected to reach approximately $240 billion in 2026. Bernstein analysts have projected that the market could eventually expand to $1 trillion by 2030 as prediction platforms develop into broader information markets covering areas such as politics, crypto, sports, and economic indicators.
The regulatory filing follows Polymarket’s recent effort to improve its public image through a marketing campaign designed to highlight its credibility among policymakers, regulators, and potential users.
The company previously faced regulatory scrutiny in the U.S. In 2020, Polymarket agreed to stop serving American customers as part of a $1.4 million settlement with the CFTC, which alleged that the platform had offered unregistered event-based derivative contracts.
Polymarket has not provided an official response regarding the application.
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