US regulators are taking another look at whether Polymarket effectively kept American users off its offshore prediction market, according to a Reuters report. The renewed scrutiny centers on the company’s obligations under a 2022 settlement with the Commodity Futures Trading Commission.

The review is examining several compliance measures, including geolocation checks, advertising in the United States, sign-up procedures and consumer-protection practices. No violation has been established, and neither the CFTC nor Polymarket commented on the matter.

Review reopened after earlier matter was closed

Reuters reported that the CFTC has reopened a matter it had previously closed and is now reassessing Polymarket’s controls for limiting access by US-based users. The renewed review forms part of a broader investigation into the platform that began earlier this year.

The focus is whether Polymarket complied with the terms of its 2022 settlement, which required the company to block US users from its offshore platform. The agency is revisiting how those requirements were implemented in practice rather than announcing any confirmed breach at this stage.

Compliance checks under examination

According to the report, the CFTC is reviewing how Polymarket verifies where users are actually located, an issue that goes beyond simple self-declaration during account creation. The agency is also looking at the platform’s sign-up flow and its broader consumer-protection measures.

Another area of interest is whether Polymarket advertised in the United States while it was supposed to be excluding US users from the offshore service. Those lines of inquiry suggest regulators are looking at both technical access controls and the company’s conduct around attracting and onboarding users.

Background from the 2022 settlement

Polymarket was fined $1.4 million in 2022 over allegations that it offered unregistered event-based binary options. That settlement required the company to prevent US users from accessing its offshore platform.

The company later came under fresh attention during a period of heightened trading tied to the US presidential election. The CFTC and the Justice Department then examined whether Polymarket was complying with the settlement, but that earlier investigation was closed in July 2025.

Separate case highlights access concerns

Questions around Polymarket’s US access controls have also surfaced in a separate insider-trading case. In that matter, a US user allegedly used a VPN to access the offshore platform and reportedly turned about $34,000 into more than $400,000.

That case is distinct from the CFTC’s current review, but it underscores the practical difficulties regulators may consider when assessing location-based restrictions on offshore platforms. The trial in the insider-trading case is tentatively scheduled for December 7.

What comes next

For now, the latest CFTC review remains just that: a reopened examination of compliance measures, not a finding of wrongdoing. No enforcement outcome has been announced, and the agency has not publicly said whether it believes Polymarket violated the settlement terms.

A related point in Polymarket’s broader US strategy is that the company later sought to reenter the American market by acquiring a CFTC-licensed exchange. The next confirmed milestone mentioned in the current reporting is the December 7 tentative trial date in the separate insider-trading case.

Source: en.bloomingbit.io