Polymarket is seeking regulatory approval to offer margin trading to U.S. customers, a move that would push the prediction market operator deeper into the regulated derivatives business.

The company submitted an application for a futures commission merchant license on July 3 through Coming Home GBA LLC, according to Bloomberg. The license would allow Polymarket to operate more like a traditional futures broker, handling customer orders and funds for derivatives trading.

An FCM is a firm that solicits or accepts orders for futures, options on futures or swaps, and accepts money or other assets from customers to support those orders, according to the National Futures Association. Registered FCMs must also become NFA members.

The filing comes as Polymarket is trying to turn its U.S. return into a broader regulated business. The company received an amended order of designation from the CFTC in November, allowing it to operate an intermediated trading platform under the requirements applied to federally regulated U.S. exchanges.

That approval allowed Polymarket to onboard brokerages and customers directly and use traditional market infrastructure for custody, reporting, and access. The company said at the time that it had developed enhanced surveillance, market supervision, clearing, and regulatory reporting systems before launch.

Margin trading would mark another step in that transition. It would introduce leverage into event contracts, a structure that could appeal to more sophisticated traders but would also increase the importance of risk controls, surveillance, and customer protection.

Polymarket’s U.S. push follows years of regulatory pressure. In 2022, the CFTC ordered the company to pay a $1.4 million penalty and wind down markets that did not comply with federal derivatives rules, after finding that Polymarket had operated an unregistered event contracts platform.

The company has since moved to rebuild its U.S. presence through a regulated structure. AP reported this week that Polymarket has been trying to distinguish its U.S. exchange from its international platform, with the U.S. business operating under CFTC oversight and using traditional dollars rather than crypto.