Kalshi and Crypto.com have announced the formation of a national alliance of prediction market operators, called the Coalition for Prediction Markets (CPM). This new group includes prominent entities such as cryptocurrency exchange Coinbase, retail trading platform Robinhood, and sports gaming operator Underdog. The emergence of this coalition is set against a backdrop of significant growth in the U.S. prediction market sector since the beginning of the year, particularly following a federal court ruling last year that lifted a ban on betting related to elections.
The popularity of prediction markets has surged, with many investors viewing these platforms as a new area for potential growth. According to Nick Jones, founder of the crypto firm Zumo, the recent ruling acted as a catalyst for increased investor interest. He emphasized that the formation of the CPM would help legitimize the sector by strengthening operating rules and setting higher integrity standards.
These prediction market platforms allow users to trade binary contracts based on various outcomes across realms such as politics, sports, economics, and entertainment. However, despite growing enthusiasm, the industry also faces skepticism, with some critics labeling it as a form of online gambling.
Matt David, an executive board member of CPM, highlighted the importance of a unified voice for the prediction market industry, stating that the U.S. serves as a significant frontier for this market. He noted that the current momentum necessitates such collaboration.
Both Kalshi and its competitor Polymarket have seen rapid expansion, with Kalshi’s valuation reportedly more than doubling to $11 billion in 2025 following recent funding rounds. The coalition aims to focus on several key objectives, including advocating for a robust federal framework for prediction markets, setting nationwide integrity standards to combat insider trading, and addressing any overreach at the state level.
Sara Slane, head of corporate development at Kalshi and an executive member of the coalition, stressed the ongoing collaboration with the Commodity Futures Trading Commission (CFTC) to ensure that prediction markets operate under strong federal safeguards. These measures are intended to protect consumers and maintain transparency within the sector.
The coalition also indicated that more companies are in discussions to join this emerging alliance, signaling a growing industry interest in harmonizing standards and practices within the prediction market ecosystem.
