Crypto.com, Kalshi launch industry coalition as state challenges mount | Yogonet International
Summary
Crypto.com and prediction-market operator Kalshi have launched the Coalition for Prediction Markets (CPM), a new industry group set up to defend federal oversight of prediction markets as a growing number of US states press enforcement actions. Founding members include Coinbase, Robinhood and Underdog. CPM says it will push for “safe, transparent, and federally supervised access to prediction markets,” arguing that inconsistent state rules threaten market integrity and could create insider advantages.
The coalition’s early priorities are reinforcing the federal framework, establishing nationwide standards for integrity (to prevent insider trading and ensure fairness), and pushing back against state-level overreach in areas such as sports, elections and economic indicators. The move follows cease-and-desist orders from Connecticut and similar actions from Nevada, Massachusetts, Maryland and New Jersey. Analysts expect the dispute over federal vs state authority could reach the US Supreme Court.
Key Points
- Crypto.com and Kalshi launched the Coalition for Prediction Markets (CPM) to defend federal oversight and push nationwide integrity standards.
- Founding members include Coinbase, Robinhood and Underdog; other firms (DraftKings, FanDuel) are potential additions.
- CPM’s priorities: reinforce federal framework, set nationwide integrity rules, and resist state-level regulatory fragmentation.
- Several states (Connecticut, Nevada, Massachusetts, Maryland, New Jersey) have issued enforcement actions or branded prediction markets as unlicensed gambling.
- Kalshi’s move into sports markets in 2025 dramatically increased scrutiny—sports now account for about 90% of its trading volume and helped lift its valuation to $11bn.
- The CFTC currently oversees prediction markets and allows exchanges to self-certify contracts, but states argue they can act independently—setting up a likely legal showdown.
- A Kalshi-backed poll shows strong public support for prediction markets and preference for federal regulation over a patchwork of state rules.
Context and relevance
Prediction markets have grown fast, attracting big tech, sportsbook and crypto players. That growth — especially into sports markets — has sharpened the regulatory debate: firms want a single federal rulebook to ensure consistent guardrails, while several states are asserting their own gambling laws. The outcome will affect operators, regulators, investors and users: federal clarity would enable broader rollouts and investor certainty; state wins could fragment the market and force exits or bespoke state-by-state approaches.
For industry watchers, this is part of a wider trend where digital-first financial products collide with legacy state regulatory regimes. The involvement of household names (Crypto.com, Coinbase, Robinhood) and the prospect of a Supreme Court decision make this a pivotal moment for the sector.
Why should I read this?
Short version: this fight could decide whether prediction markets operate under one federal rulebook or fifty different state rules — and that matters for anyone running, investing in, or using these platforms. Think big money, legal fireworks and faster rollouts if the feds win. Read it if you want the headlines without wading through legal filings — we’ve done the skimming for you and flagged what actually moves the needle.
