Polymarket seeks approval to introduce margin trading for U.S. users

Polymarket is taking steps to bring margin trading to its U.S. customer base, seeking regulatory clearance for a feature that would allow traders to open positions with less capital than the full value of the contract.

The prediction market company’s U.S. affiliate, Coming Home GBA LLC, has filed an application for a futures commission merchant (FCM) license with the National Futures Association, Bloomberg reported, citing a company representative. The platform would also require approval from the Commodity Futures Trading Commission (CFTC) to revise its rules and permit trades that are not fully collateralized.

Prediction markets such as Polymarket and Kalshi allow users to speculate on the outcomes of real-world events, including political races, sporting competitions, and weather-related developments. Margin trading is a common practice in traditional financial markets, enabling traders to increase exposure by using borrowed capital or posting only a portion of the total position value. Kalshi received regulatory approval to offer margin trading in March.

The move comes as prediction markets experience significant growth. The sector recorded roughly $51 billion in trading volume last year and is expected to reach around $240 billion in 2026. Bernstein analysts have suggested that the industry could eventually expand into a $1 trillion market by 2030 as prediction platforms develop into large-scale information markets spanning areas such as politics, crypto, sports, and macroeconomic trends.

Polymarket’s filing follows a recent campaign by the company aimed at improving public perception and demonstrating its commitment to compliance among regulators, lawmakers, and potential users.

The company has previously faced restrictions in the U.S. In 2020, Polymarket reached a $1.4 million settlement with the CFTC and agreed to stop serving American customers after regulators alleged it had operated unregistered event-based derivatives markets.

Polymarket has not yet commented publicly on its margin trading application.