How to Build a CFTC-Compliant Polymarket Bot in 2026

I spent the last three weeks migrating my Polymarket trading system to the official US API. Here's the full walkthrough - KYC, Ed25519 credentials, Python SDK setup, and the compliance framework that keeps your bot on the right side of the CFTC. The Regulatory Reality in March 2026 Polymarket operates under a CFTC no-action letter. That means it's legal for US persons to trade on the platform, but only through the official channels with proper KYC. The unofficial workarounds that worked in 2024 - VPNs, non-KYC wallets, frontend scraping - those are now actively monitored. Palantir's surveillance platform (announced March 10) makes enforcement real, not theoretical. If you're building a bot for Polymarket in 2026, compliance isn't optional. It's the foundation. Step 1: KYC Registration Polymarket's KYC process runs through their iOS app. You'll need: Social Security Number (US persons only for the US API) Government-issued photo ID (driver's license or passport) Proof of address (utilit