Polymarket Files for US Margin Trading Authority

Prediction market platform Polymarket has taken a significant step towards enabling leveraged trading, or margin trading, for its U.S. users. On July 3, 2026, the company, through its affiliate PM Derivatives LLC, filed three registration applications with the National Futures Association (NFA). These applications seek registration as a futures commission merchant (FCM), NFA membership, and swap firm status.

Approval as a futures commission merchant would allow Polymarket to offer leveraged or margin positions, where users post only a portion of a contract's total value upfront. This is seen as a strategic move aimed at enhancing capital efficiency and attracting a broader range of investors to the platform. However, for Polymarket to launch leveraged event contracts in the U.S., it still requires final authorization from the Commodity Futures Trading Commission (CFTC) and amendments to its rulebook to permit non-fully collateralized trading.

Polymarket is not alone in pursuing this path; rival prediction market platform Kalshi has followed a similar trajectory. Kalshi's affiliate, Kinetic Markets LLC, completed the NFA stage in March 2026, receiving approval as a registered FCM and swap firm. Like Polymarket, Kalshi is also awaiting final CFTC approval for rule changes to offer partially collateralized trading. These developments indicate increasing competition within the prediction market sector and a concerted effort by platforms to adopt more institutional structures.

Polymarket's applications come at a time when the company faces ongoing regulatory and legal scrutiny in the U.S. Previous reports from Bloomberg indicated that the CFTC is investigating various aspects of Polymarket's business, including its social media operations. Additionally, the platform is contending with lawsuits from users regarding certain market resolutions. This situation highlights the complex regulatory environment for prediction markets in the U.S., navigating both federal derivatives laws and state gambling statutes.

The introduction of margin trading could further align prediction markets with traditional derivatives markets, making them more appealing to institutional investors and sophisticated traders. While leveraged positions can enhance capital efficiency, they also underscore the importance of robust risk controls, surveillance, and customer protection mechanisms within these markets. Analysts suggest that the CFTC's approach to such products will be critical in shaping the future growth potential and regulatory framework of prediction markets in the United States.