TLDR
- On July 3, Polymarket submitted applications to the National Futures Association seeking authorization for margin trading services in the United States.
- PM Derivatives LLC handled the submissions for FCM registration, NFA membership, and Swap Firm status.
- Final approval from the CFTC remains necessary before Polymarket can launch leveraged trading features.
- Competitor Kalshi secured NFA authorization back in March 2026 via its subsidiary Kinetic Markets LLC.
- June saw unprecedented trading activity for both platforms — Kalshi reached $33 billion while Polymarket totaled almost $14 billion across entities.
In a strategic move to expand its U.S. operations, Polymarket has submitted regulatory paperwork to the National Futures Association seeking permission to provide margin trading services. This capability would enable platform users to wager on real-world outcomes while posting reduced collateral compared to existing requirements.
Polymarket Seeks License to Offer Margin Trading Legally in US
According to Bloomberg, Polymarket, the world’s largest prediction market platform, is seeking US regulatory approval to offer margin trading, allowing users to open positions without posting the full amount of… pic.twitter.com/Ah6CL2ZVWj
— Wu Blockchain (@WuBlockchain) July 10, 2026
The regulatory submissions went through PM Derivatives LLC on July 3. These filings encompass registration as a futures commission merchant, National Futures Association membership, and Swap Firm authorization. A related entity named Coming Home GBA LLC appears in the documentation as well.
Securing NFA authorization represents only the initial phase. Polymarket must still obtain approval from the Commodity Futures Trading Commission before introducing leveraged trading options to American customers.
The company has remained silent regarding these regulatory filings. The Block contacted Polymarket for comment but has not received a response.
Kalshi Maintains Regulatory Advantage
Kalshi, the primary rival in this space, has already established a significant lead. During March 2026, the platform’s subsidiary Kinetic Markets LLC obtained NFA registration as both a futures commission merchant and Swap Firm.
This existing authorization positions Kalshi to immediately provide margin trading capabilities to its customer base. Polymarket now finds itself playing catch-up in the regulatory race.
Meanwhile, both platforms continue experiencing explosive growth. June marked a milestone month for trading activity on each service.
Kalshi processed $33 billion in total trading volume during June. Polymarket, including its U.S. operations, generated approximately $14 billion over the same timeframe.
The Impact of Margin Trading on Platform Users
Margin trading functionality enables participants to control larger positions while committing less upfront capital. Within prediction markets, this means users can place wagers on various events — spanning political elections to economic data releases — without funding the entire position value.
Such trading mechanisms particularly attract sophisticated market participants seeking to manage substantial positions while keeping capital deployment flexible.
Polymarket has been steadily broadening its presence within the American market. The pursuit of regulated margin trading represents a key component of this expansion strategy.
According to Bloomberg’s reporting, the platform aims to cultivate a more advanced and professional trader demographic.
These regulatory efforts unfold as prediction markets capture increasing mainstream interest. The record-breaking June volumes on both Kalshi and Polymarket demonstrate robust market appetite for these services.
The NFA applications represent tangible progress toward delivering a feature that competitors already provide.
The timeline and outcome of CFTC review will ultimately dictate whether and when American traders can access margin functionality on Polymarket’s platform.
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