In a significant development for the prediction market landscape, Kalshi and Crypto.com announced the formation of a national alliance consisting of prominent operators in the sector. This newly established group, known as the Coalition for Prediction Markets (CPM), includes notable members such as cryptocurrency exchange Coinbase, retail trading platform Robinhood, and sports gaming operator Underdog.
The creation of the CPM comes at a time when the prediction market sector in the U.S. has gained remarkable traction, especially following a federal court’s decision last year that dismissed a longstanding prohibition on election betting. This legal shift has spurred a burgeoning interest in prediction markets, allowing users to trade binary contracts on various outcomes in politics, sports, economics, and entertainment. As major companies like Robinhood and Underdog aim to capitalize on this growth, the sector is increasingly seen as a viable investment opportunity.
However, not everyone welcomes this trend. Critics have raised concerns, likening prediction markets to gambling platforms that could pose risks to consumers. Addressing these criticisms, Matt David, an executive board member of CPM, emphasized the importance of a unified voice within the industry. “The U.S. is the biggest frontier for prediction markets, and the momentum we’re seeing makes a unified industry voice not just important, but necessary,” he stated.
The rise of prediction market startups has been notable, with Kalshi and its peer, Polymarket, experiencing rapid expansion in 2025. Kalshi’s valuation has surged, more than doubling to $11 billion after a recent funding round, indicating strong investor confidence in the sector’s future.
The coalition aims to establish a robust regulatory framework for prediction markets at the federal level. Key objectives include creating nationwide integrity standards to combat insider trading, as well as addressing potential regulatory overreach at the state level. Sara Slane, head of corporate development at Kalshi and an executive member of the coalition, remarked, “We spent years working with the CFTC because prediction markets must operate with strong federal safeguards that prevent insider trading, protect consumers, and ensure these markets remain transparent and corruption-free.”
As the CPM looks to broaden its reach, the group has indicated that more companies are in discussions to join the coalition, potentially expanding its influence within the industry.
