Prediction Market Giants Unite to Push for Federal Oversight
A new political force has emerged around one of the fastest-growing corners of the digital economy.
Several of the largest firms operating in crypto and online trading have joined together to shape how prediction markets will be governed in the United States — and to push back against what they see as creeping state-level overreach.
A Bid to Cement CFTC Authority
Instead of allowing individual states to determine how event-based markets should operate, companies including Kalshi, Crypto.com, Coinbase, Robinhood, and Underdog have aligned behind a new advocacy organization called the Coalition for Prediction Markets (CPM).
Its mission is clear: ensure that the Commodity Futures Trading Commission remains the sole federal regulator of these platforms.
Leaders of the coalition argue that prediction markets function more like financial instruments than gambling products, and therefore belong under derivatives oversight rather than within state casino frameworks.
A Growing User Base Pushes Prediction Markets Into the Mainstream
One of the coalition’s core arguments is that prediction markets have already become part of daily digital life for millions of Americans. Surveys cited by the group suggest that engagement among adults under 45 has surged to the point where nearly half have interacted with a prediction platform.
With that scale, they say, the need for consistent federal regulation is no longer optional.
Crypto.com’s North America president, Matt David, described the industry as a new information layer for public life — a system that distills expectations around politics, economics, and culture in real time. According to David, giving the market a stable regulatory structure is essential if it is to serve civic and institutional purposes.
Industry Pushback Against State Enforcement Actions
Momentum for the coalition grew after several states attempted to exert gambling authority over event contracts, issuing warnings, cease-and-desist orders, and in some cases, outright bans.
Companies operating legally under federal commodities rules view these moves as jurisdictional overreach, arguing that conflicting requirements could fracture the market and push users toward unregulated offshore platforms.
Kalshi executive Sara Slane said the industry has been working toward a unified regulatory standard from the beginning. Without one, she warns, both businesses and users face unnecessary uncertainty.
READMORE: Why Bitcoin’s Next Move May Come From Central Banks
A Rapidly Expanding Market That Outperforms Polling
The financial footprint of the sector illustrates why its governance matters.
As of October, U.S. prediction markets had already processed around $28 billion in trading volume for 2025 — a dramatic increase from previous years. Academic studies regularly show that prediction markets outperform traditional polling by significant margins, adding to their relevance during election cycles and periods of economic volatility.
The coalition believes that such growth can only be sustained if the rules are unambiguous — and written at the federal, not state, level.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
