Kalshi and Crypto.com have announced they’re forming the Coalition for Prediction Markets, a new national alliance that brings together industry players like Coinbase, Robinhood, and Underdog in the US. The goal, they say, is to protect what they call “safe, transparent, and federally supervised access to prediction markets.”
And over 70% of Americans agree on a key point: these markets shouldn’t be treated like gambling.https://t.co/pgwjQQJJCn
— Coalition for Prediction Markets (@PredictAction) December 11, 2025
Supporters argue these platforms offer a valuable read on public expectations. They point to claims that prediction markets beat traditional polling by around 30%, and note that trading volume has already hit nearly $28 billion through October of this year. The organizers also highlighted survey results suggesting that almost half of Americans under 45 have used some kind of online financial or prediction market.
There’s no question that prediction markets are reshaping how we understand the future – empowering millions of Americans with transparent, real-time collective intelligence.We at @Kalshi saw the need for a unified industry voice, and with the partnership of @cryptocom, we’re…
— Sara Slane (@Sara_Slane) December 11, 2025
The coalition is launching at a tense moment. Kalshi, Crypto.com, and other platforms are dealing with lawsuits and regulatory pushback in several states. In Connecticut, for example, the Department of Consumer Protection issued cease-and-desist orders to Kalshi, Robinhood Derivatives, and Crypto.com, accusing them of offering unlicensed sports betting.
Kalshi has fired back with a lawsuit, arguing that its contracts fall under federal commodities law and should be regulated solely by the Commodity Futures Trading Commission (CFTC). A federal judge has temporarily blocked Connecticut from enforcing its order while the case moves forward.
Massachusetts has also tried to prevent Kalshi from running sports-related prediction markets, saying they amount to unlicensed gambling. Federal judges in Nevada and Maryland have at times sided with similar state arguments, and Kalshi is fighting additional battles in New York and elsewhere. The companies insist their products aren’t gambling at all, but federally regulated financial instruments.
Prediction markets coalition targets US as momentum surges
Matt David, an executive board member of the coalition and president of North America and chief corporate affairs officer at Crypto.com, said, “The U.S. is the biggest frontier for prediction markets, and the momentum we are seeing makes a unified industry voice not just important, but necessary.”
He added, “Prediction markets are a new layer of civic infrastructure – public-good technology that gives people clearer insight and helps institutions make better decisions. They democratize financial participation by rewarding what people know, not who they know. As consumer interest accelerates and regulation evolves, this coalition will champion responsible, transparent growth to ensure the benefits of prediction markets reach the broader public.”
The organizers say they’re launching the coalition because some state casino regulators are now trying to stretch their authority into an area that’s historically been handled at the federal level.
That, they argue, could lead to clashing rules and make these markets harder for consumers to access. In their announcement, they stressed that the CFTC is the right regulator for this space, since its oversight can provide consistent rules and protections, much like those used in the securities markets.
Sara Slane, an executive board member of the coalition and head of corporate development at Kalshi, said, “From day one, we wanted to be regulated. 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.”
She continued, “Americans deserve clarity, not 50 conflicting interpretations. As the first federally regulated prediction market, Kalshi saw firsthand how quickly this space was growing and how urgently a unified industry voice was needed to advocate for access and consistency nationwide.”
According to the release, the coalition’s initial efforts will center on shoring up the federal rules that govern prediction markets, creating nationwide standards to guard against insider trading, and pushing back against what it sees as state overreach into areas like sports, elections, and economic or financial indicators. The timing comes as more companies, including FanDuel and Fanatics, are moving into the prediction-market arena. Polymarket has even rolled out a beta version in the US after previously being barred from operating in the country.
Featured image: Coalition for Prediction Markets
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