The Commodity Futures Trading Commission is investigating whether Polymarket broke a 2022 enforcement settlement, according to Reuters reporting earlier today. The probe revives an inquiry the agency closed in 2025 without filing charges. For a platform that has tried to fit prediction markets inside US law, the question strikes at its core.

Polymarket settled with the CFTC in January 2022 and paid a $1.4 million penalty for offering event-based binary options without registration. The company agreed to block American users from its offshore exchange. Geofencing tools followed, but regulators and critics pointed to traders who reached the site through VPNs. The platform has also…

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