Polymarket is gearing up for a competitive edge in the U.S. prediction market landscape by filing applications with the National Futures Association (NFA) to introduce margin trading. This strategic move, filed on July 3, will allow users to place bets on real-world events with less capital upfront than currently required.
The applications were submitted through PM Derivatives LLC, seeking registration as a Futures Commission Merchant (FCM), NFA Member, and Swap Firm. An affiliated entity, Coming Home GBA LLC, is also included in these filings.
However, securing NFA approval is merely the first hurdle. Polymarket will also require the green light from the Commodity Futures Trading Commission (CFTC) to fully enable leveraged trading for its U.S. user base. As of now, Polymarket has remained tight-lipped regarding the filings, and inquiries for comments have gone unanswered.
Kalshi’s Advantage in the Race
In this race for regulatory approval, Kalshi, Polymarket’s main competitor, has already taken a significant lead. In March 2026, Kalshi’s affiliate, Kinetic Markets LLC, successfully secured NFA approval as a registered Futures Commission Merchant and Swap Firm. This achievement positions Kalshi to offer margin trading, while Polymarket scrambles to catch up.
Both platforms are experiencing rapid growth, as evidenced by record trading volumes in June. Kalshi recorded an impressive $33 billion in trading volume, while Polymarket, along with its U.S. entity, accumulated nearly $14 billion during the same month.
The Implications of Margin Trading for Users
Margin trading allows traders to leverage their capital by opening larger positions with a smaller upfront investment. In a prediction market context, this means users can place bets on events ranging from election outcomes to economic forecasts without needing to stake the total amount.
This trading style is particularly enticing for seasoned traders looking to manage larger positions while minimizing the cash tied up in their accounts. Polymarket is actively expanding its footprint in the U.S. market, and pursuing regulated margin trading is a crucial component of this strategy.
With the increasing mainstream attention on prediction markets, Polymarket’s regulatory ambitions come at a time of heightened user interest. Both Kalshi and Polymarket’s record-setting volumes in June underscore a robust demand for these trading platforms.
The recent NFA filings mark a significant step toward introducing a product that is already available via a competitor. The timeline for Polymarket to receive CFTC approval remains uncertain, but it will ultimately determine when, or if, U.S. users can access margin trading on its platform.
