Polymarket Pursues NFA Registration to Launch US Margin Trading Services

TLDR

• On July 3, Polymarket submitted regulatory applications to the National Futures Association seeking authorization for U.S. margin trading capabilities.
• PM Derivatives LLC filed for FCM registration, NFA membership, and Swap Firm designation on behalf of the platform.
• Additional approval from the CFTC remains necessary before Polymarket can launch leveraged trading services.
• Competitor Kalshi secured NFA authorization through Kinetic Markets LLC back in March 2026, giving it a significant advantage.
• June 2026 saw both platforms achieve unprecedented trading activity — Kalshi reached $33 billion while Polymarket totaled approximately $14 billion across entities.

The prediction market platform Polymarket has submitted formal applications to the National Futures Association seeking permission to provide margin trading services to American customers. This capability would enable platform users to take positions on real-world outcomes while committing smaller initial capital amounts.

The regulatory submissions were lodged on July 3 via the entity PM Derivatives LLC. These applications encompass registration as a futures commission merchant, membership in the NFA, and designation as a Swap Firm. A related entity named Coming Home GBA LLC appears in the documentation as well.

Securing NFA authorization represents merely the initial phase. Polymarket must also obtain authorization from the Commodity Futures Trading Commission before American users can access leveraged trading functionality on the platform.

The company has not issued any official statement regarding these regulatory filings. The Block contacted Polymarket representatives for commentary but has not received a response.

Kalshi Maintains Regulatory Advantage

Polymarket’s primary rival, Kalshi, has already advanced considerably further in the approval process. Back in March 2026, Kinetic Markets LLC, an affiliate of Kalshi, obtained NFA authorization as both a registered futures commission merchant and Swap Firm.

This regulatory clearance means Kalshi can currently provide margin trading options to its customer base. Polymarket is now attempting to close this competitive gap.

Both prediction market platforms are experiencing rapid expansion. June brought record-breaking monthly transaction volumes for each service.

Kalshi processed $33 billion in trades during June alone. Polymarket, including its U.S.-focused entity, generated approximately $14 billion in combined volume during the identical timeframe.

What Margin Trading Would Mean for Users

Margin trading enables market participants to control larger positions while committing less upfront capital. Within prediction markets specifically, this functionality would let users place wagers on various events — ranging from political elections to economic data releases — without depositing the complete position value.

This trading structure particularly attracts seasoned traders seeking to manage substantial positions while maintaining capital flexibility.

Polymarket has been actively expanding its presence within the American market. The pursuit of regulated margin trading capabilities represents a significant component of this strategic expansion.

According to Bloomberg’s reporting, the platform aims to draw a more advanced and sophisticated trader demographic.

Polymarket’s regulatory initiatives arrive as prediction markets capture increasing mainstream interest. The record June volumes posted by both Kalshi and Polymarket demonstrate robust user engagement and demand.

These NFA submissions represent a tangible advancement toward providing a service that a direct competitor already offers its users.

The timing and outcome of potential CFTC approval will ultimately dictate whether and when American users gain access to margin trading functionality on Polymarket’s platform.

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