Short answer: Polymarket is not legal for US residents to trade on as of 2026. Polymarket settled with the CFTC in 2022 and now geo-blocks US users at the platform level. Many Americans access it via VPN anyway, but doing so violates Polymarket's terms of service and exists in a legal gray area. The fully-legal US alternative is Kalshi.
Why Polymarket isn't legal in the US
In January 2022, Polymarket settled charges with the Commodity Futures Trading Commission (CFTC) for operating an unregistered Designated Contract Market — essentially, running a regulated commodity exchange without the regulatory approval the law requires. As part of the $1.4 million settlement, Polymarket agreed to:
- Block all US-based users from accessing the platform
- Wind down all existing US user positions
- Cease offering event contracts to US persons
This is why visiting polymarket.com from a US IP address shows a geo-block. The restriction isn't technical — it's a regulatory commitment Polymarket made to the CFTC.
What about using a VPN?
Many US users access Polymarket via VPN. The platform doesn't appear to aggressively detect VPN traffic, and there has been no enforcement action against individual US traders. But the risks are real:
- Terms of service violation: Polymarket's TOS explicitly prohibits US persons. They can freeze or close your account at any time, including before a winning position pays out.
- Withdrawal friction: Converting USDC winnings back to USD typically requires a centralized exchange (Coinbase, Kraken). KYC at those exchanges creates a paper trail tying your identity to Polymarket activity.
- Tax exposure: Polymarket doesn't issue 1099 forms. You're responsible for tracking gains and losses and reporting them — and the absence of a 1099 doesn't mean the IRS won't notice.
- No regulatory recourse: If Polymarket freezes your account or a market resolves disputed, you have no US regulator to appeal to.
- Future enforcement uncertainty: No US user has been individually prosecuted for VPN access, but that's not a legal guarantee. CFTC enforcement priorities can shift.
For the practical "how to" details people often look for, see our Polymarket-in-US guide. We don't recommend VPN access — we explain what people actually do and what the consequences are.
The legal US alternative: Kalshi
If you want to trade prediction markets legally in the United States, Kalshi is the option. Kalshi is a CFTC-regulated Designated Contract Market — the very status Polymarket lacks. That means:
- Legal in 47+ US states (a few states like Nevada and Hawaii have specific restrictions)
- USD trading via ACH and debit card — no crypto required
- Bank withdrawals directly to your account
- 1099 tax forms issued automatically
- Segregated customer funds protected under CFTC rules
For state-by-state details and how Kalshi's regulatory status works, see Is Kalshi legal? State-by-state guide.
How they overlap and differ
Kalshi covers many of the same event categories as Polymarket: elections, Fed rate decisions, CPI prints, weather events, and increasingly sports. The differences:
- Liquidity: Polymarket usually has deeper books on political markets globally; Kalshi's volume is rising fast and now leads on US-specific events.
- Market breadth: Polymarket lists more speculative markets (cultural events, viral moments). Kalshi's CFTC oversight means stricter listing standards.
- Settlement currency: Polymarket settles in USDC on Polygon. Kalshi settles in USD.
- Fees: Polymarket has subsidized 0% trading fees on most markets. Kalshi charges a small per-contract fee. See Kalshi vs Polymarket fees.
Will Polymarket ever be legal in the US?
Possibly. The regulatory environment has shifted meaningfully:
- Kalshi's success with CFTC approval shows there's a legal path for US prediction markets.
- 2026 regulatory tone has been more open to event contracts than in 2022, with several state-level wins for Kalshi-adjacent products.
- Polymarket has been investing in compliance infrastructure and reportedly exploring a regulated US offering.
That said, Polymarket would need to fundamentally restructure (likely as a separate US-domiciled entity) and get CFTC approval to legally serve US users. That's a multi-year process. Until then, the answer remains: not legal.
Bottom line
Polymarket is not legal for US residents in 2026. The block is the result of a CFTC settlement, not a technical limitation, so accessing via VPN violates the platform's TOS and offers no regulatory protection. If you're in the US and want to trade prediction markets legally, use Kalshi.