Polymarket seeks US approval for margin trading

Prediction market platform Polymarket is seeking regulatory approval in the U.S. to offer margin trading services, Bloomberg reported. This system, often used by institutional investors, allows users to open leveraged positions without committing their full capital. While efficient, it amplifies potential profits and losses and carries the risk of forced liquidation. Another platform, Kalshi, obtained a license this year and began supporting perpetual futures. However, Polymarket's use of blockchain to ensure anonymity conflicts with U.S. regulations, which require identity verification for margin trading on prediction market platforms.