Chairman Michael Selig of the Commodity Futures Trading Commission announced a new AI‑driven effort to police insider tarding on Polymarket, a prediction‑market platform that has drawn attention from the Trump administration. The move comes as U.S. users increasingly bypass a domestic block by using VPNs and crypto wallets.

CFTC Chairman Michael Selig pledges AI‑driven crackdown

According to the report, Selig told reporters the commission will deploy artificial‑intelligence tools to sift through betting patterns and flag suspicious activity on Polymarket. he emphasized that “AI tools are helping the CFTC bring bad actors to light,” signalling a shift from manual audits to algorithmic surveillance.

Polymarket’s US block and VPN circumvention

The platform’s website is currently blocked in the United States because federal trading laws forbid wagers on topics such as war, terrorism and assassinations. Yet the report notes that U.S. traders are still accessing the site via virtual‑private networks and cryptocurrency payments,complicating the CFTC’s ability to trace illicit bets.

Only one insider‑trading charge filed to date

Despite growing concerns, the commission has so far charged just a single American with insider trading on Polymarket. the source highlights that this lone prosecution underscores the difficulty of gathering evidence in a market that operates partly offshore and leverages anonymity tools.

Potential US entity could legitimize Polymarket

The CFTC has allowed Polymarket to form a U.S. subsidiary, a step that could enable a version of the site to run under full legal oversight. if the company complies with regulatory standards, it may avoid the current block and operate openly, according to the article.

Unanswered: How effective will extraterritorial reach be?

The report points out that the commission will continue to assert extraterritorial jurisdiction over “extreme circumstances,” but it remains unclear how often such authority will be exercised against an overseas platform. No details were given on the criteria for invoking this power.