Polymarket has filed three registration applications with the National Futures Association as it seeks to introduce margin trading for U.S. users, marking a significant expansion of its trading capabilities. According to the National Futures Association's BASIC database, Polymarket affiliate Coming Home GBA LLC submitted the applications through PM Derivatives LLC on July 3, 2026, seeking registration as a futures commission merchant, an NFA member, and a swap firm. Approval as a futures commission merchant would allow Polymarket to support trades in which users provide only part of the contract's total value upfront, though the platform would still need approval from the Commodity Futures Trading Commission before offering leveraged event contracts in the U.S. As a Futures Commission Merchant, Polymarket would handle customer funds and margin in the same way as established futures intermediaries do, enabling leveraged trading and providing institutions with familiar brokerage and custody rails.
The margin trading applications come as Polymarket faces significant regulatory and legal scrutiny in the U.S. Bloomberg reported that the CFTC is investigating several parts of its business, including its social media operations. One part of the reported inquiry concerns allegations that Polymarket hired content creators to post promotional videos featuring simulated trades and fabricated winnings, though the company has not publicly addressed those allegations. In New York, two users sued Polymarket on July 3 over the resolution of a market tied to whether Strategy would sell Bitcoin by May 31, 2026, with the plaintiffs alleging the platform denied payouts to 'Yes' holders even though Strategy disclosed the sale of 32 Bitcoins in an SEC filing. The lawsuit centers on the gap between market titles and resolution rules, with $6.5 million in losses across 1,868 traders coming from the same issue.
An FCM license represents the highest tier of US derivatives intermediary registration, allowing Polymarket to offer regulated margin trading through a fully licensed intermediary. This is a materially different arrangement from the on-chain, self-custody model that drew CFTC attention four years ago. As a Futures Commission Merchant, Polymarket would hold customer collateral under futures-industry custody and segregation rules, enforce margin calls, handle KYC verification, and file regulatory reports with the CFTC. The FCM model inserts a licensed broker between the user and the exchange, unlocking access for institutional clients but adding friction for retail users accustomed to DeFi's permissionless rails. Polymarket's regulatory journey began with a $1.4 million CFTC fine in January 2022 for operating an unregistered event-contract market, followed by the acquisition of CFTC-licensed QCX LLC and QC Clearing LLC for about $112 million to gain regulated exchange infrastructure.
Polymarket's weekly trading volume exceeded $4 billion in June 2026, setting a record and demonstrating its scale ahead of the launch of its US margin product. The FCM filing aims to transform this volume into a more sophisticated, institutionally accessible offering by introducing leverage and regulated brokerage infrastructure. While competitors like Hyperliquid dominate on-chain perpetuals, they operate outside the US regulatory framework. A CFTC-licensed Polymarket with FCM-backed margin trading could fill a critical gap for US institutions. However, the NFA and CFTC have yet to approve the Coming Home GBA application, and the approval timeline and number of FCM partners will determine the product's competitiveness. Kalshi has already completed the NFA stage of the regulatory process, with its affiliate Kinetic Markets LLC receiving approval as a registered futures commission merchant and swap firm in March 2026.
