U.S.-linked wallets appear to be the largest political trading group on Polymarket’s global platform, even though the platform lists the United States as a blocked country.
Summary
- U.S.-linked wallets dominate Polymarket political trading despite geoblocks, according to new Allium on-chain research findings.
- Researchers say offshore activity raises fresh oversight questions as prediction markets face tougher global controls.
- Polymarket restrictions list the United States as blocked, but demand appears to continue offshore globally.
Blockchain data firm Allium said in a July 3 report that the U.S. was the biggest national political market by contracts traded among wallets it could link to a country.
The firm said its data covered only about 6% of wallets with country tags, so the results should be treated as directional. Still, Allium said the pattern was clear enough to show that US demand did not disappear after access blocks. “Blocking access did not end U.S. participation,” the report said. It added that activity had moved offshore and outside direct U.S. oversight.
Geoblocks face fresh questions
Polymarket’s own geographic restriction page says the platform is unavailable in the United States and other blocked countries. It also says users must not use VPNs or similar tools to bypass location rules. The page lists 33 fully blocked countries, along with several regions where trading is not allowed.
That policy traces back to earlier U.S. enforcement. In 2022, the Commodity Futures Trading Commission ordered Polymarket to pay a $1.4 million civil penalty and wind down markets that did not comply with US rules. The platform later developed a separate U.S.-regulated product, while the global platform continued to block U.S. users.
Trading patterns point to politics and conflict
Allium said U.S.-linked wallets on Polymarket showed more interest in foreign conflict markets than the wider platform. Five of the top 12 markets by notional volume for the U.S.-linked group related to the Iran war, according to the report. “U.S. money pours into foreign wars,” Allium said, while adding that U.S.-linked traders showed less interest in election markets.
A separate analysis by Rutgers statistician Harry Crane reached a similar view in June. Crane estimated that U.S. users may account for about 30% of total Polymarket volume by studying sports preferences and trading times. His work said Polymarket’s activity pattern looked global, but still showed a large U.S. share.
Rules tighten as markets grow
The report comes as prediction markets face wider regulatory pressure. As crypto.news reported, the CFTC is preparing new prediction market rules that could affect Polymarket and Kalshi. The proposed review process would give regulators more tools to assess event contracts tied to politics, sports, and real-world events.
Previously, crypto.news reported that Spain moved to block Polymarket and Kalshi over gambling license concerns. That action followed similar blocks or restrictions in several other countries. As crypto.news reported in May, Polymarket also said it had no plan to require mandatory KYC on its main global market, even as legal and sanctions pressure increased.
The latest Allium report adds a new point to that debate. If U.S. users still reach global markets despite geoblocks, regulators may ask whether location controls can work at scale. For Polymarket, the data may add pressure at a time when the platform is also dealing with security concerns, including a recent $2.9 million frontend theft that led to promised user refunds.
The issue also puts Polymarket’s split model under closer review. Its U.S.-regulated platform offers a narrower product set, while global markets still draw interest from users who appear to be in blocked regions. That gap may become harder to defend if more data show steady activity from restricted jurisdictions.
