Crypto.com, Kalshi Form Prediction Markets Coalition
Posted on: December 11, 2025, 09:42h.
Last updated on: December 11, 2025, 09:49h.
- The Coalition for Prediction Markets (CPM) seeks preservation of transparent, federally regulated prediction market operations.
- Other members are Coinbase, Robinhood, and Underdog.
Crypto.com and Kalshi said Thursday that they’ve formed the Coalition for Prediction Markets (CPM), an organization aimed at fostering “safe, transparent, and federally supervised access to prediction markets.”
The coalition, which also includes Coinbase Global (NASDAQ: COIN), Robinhood Markets (NASDAQ: HOOD), and Underdog, arrives at a time of booming growth for the event contracts, with the group pointing out that nearly half of Americans under 45 have accessed internet-based prediction markets. CPM also comes to life as the still nascent industry is wrestling with an array of state-level legal challenges threatening prediction markets’ federal regulation.
Allowing disparate state regimes to govern prediction markets undermines the very guardrails that keep markets fair and prevent insider advantage, reinforcing the perception that financial systems are rigged in favor of those with influence,” said the CPM in a statement.
Prediction market operators, including CPM members, are regulated by the Commodities Futures Trading Commission (CFTC). The companies say that federal oversight provides consistency comparable to the monitoring federal regulators employ with domestic financial markets.
CPM Has Federal Focus
As companies like Kalshi have expanded into sports event contracts, they’ve drawn increasing scrutiny and court cases from various regulators in states where sports wagering is permitted, with those regulators claiming the prediction market firms are offering a product that’s essentially sports wagering and doing so without proper licensing.
Kalshi has fought back, hanging its legal hat on federal preemption — a legal standard that says federal regulatory authority cannot be usurped by the states. Legal experts believe the cases will ultimately be resolved by the Supreme Court. In the meantime, CPM wants to reinforce federal oversight of prediction markets operating in this country.
“The Coalition’s early work will focus on reinforcing the federal framework governing prediction markets,” according to the press release. “Central to this work is establishing and educating on nationwide standards for integrity – guardrails that prevent insider trading and ensure all participants operate on equal footing. The coalition will defend against state-level overreach, including issues tied to sports, elections, and financial and economic indicators, and advance clear, consistent standards for integrity and transparency.”
A Kalshi-backed poll released last month indicates nearly 90% of those surveyed support prediction markets in their current form, and 79% said the industry should be regulated at the federal level, not by the states.
Who Else Could Join CPM?
Perhaps surprisingly, CPM’s founding group doesn’t include Polymarket, which is Kalshi’s most direct competitor and which recently returned to the US following a multiyear hiatus. The coalition said other companies are currently in talks to join the group, but it didn’t reveal names.
It’s possible those prospects include DraftKings (NASDAQ: DKNG) and FanDuel. Last month, both sportsbook giants dropped their memberships with the American Gaming Association (AGA) amid their emphasis on prediction markets.
FanDuel Predicts recently debuted in states where the company doesn’t offer sports betting, and DraftKings Predictions is expected to launch in the near term.
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