Published on: December 11, 2025, 09:42h.
Updated on: December 11, 2025, 09:49h.
- The Coalition for Prediction Markets (CPM) aims to ensure transparent, federally regulated prediction market operations.
- Participating members include Coinbase, Robinhood, and Underdog.
On Thursday, Crypto.com and Kalshi announced their collaboration to establish the Coalition for Prediction Markets (CPM), an initiative designed to promote “safe, transparent, and federally regulated access to prediction markets.”
The formation of the coalition, which also features Coinbase Global (NASDAQ: COIN), Robinhood Markets (NASDAQ: HOOD), and Underdog, comes as interest in event contracts surges, noting that close to half of Americans under 45 have engaged with online prediction markets. The CPM emerges as the emerging sector faces significant state-level legal hurdles that could jeopardize the federal regulation of prediction markets.
“Allowing different state frameworks to regulate prediction markets compromises the essential safeguards necessary for fair markets and creates a perception that economic systems favor those with power,” stated the CPM.
Operators of prediction markets, including CPM affiliates, are overseen by the Commodities Futures Trading Commission (CFTC), which the companies believe ensures a uniform regulatory approach similar to what federal regulators apply to domestic financial sectors.
CPM’s Commitment to Federal Oversight
As firms like Kalshi venture into sports event contracts, they are experiencing heightened scrutiny and legal challenges from state regulators in jurisdictions where sports betting is allowed. These regulators assert that prediction market companies are essentially engaging in sports gambling without proper licenses.
In response, Kalshi is leveraging federal preemption—a legal principle that prohibits states from overriding federal regulatory authority. Legal analysts predict these disputes may ultimately reach the Supreme Court. Meanwhile, CPM is advocating for robust federal oversight of prediction markets within the U.S.
“The Coalition’s initial efforts will prioritize strengthening the federal framework governing prediction markets,” the press release stated. “A key aspect of this initiative will be developing and promoting nationwide standards for market integrity—safeguards that deter insider trading and ensure equitable participation for all.”
A poll supported by Kalshi, released last month, found that nearly 90% of respondents favor prediction markets as they currently exist, with 79% advocating for federal, rather than state, regulation of the industry.
Potential Future Members of CPM
Interestingly, CPM’s founding roster does not include Polymarket, Kalshi’s closest competitor, which has recently re-entered the U.S. market after a hiatus of several years. The coalition has indicated that discussions are underway with other firms interested in joining, although specific names were not disclosed.
Prospective members could potentially include DraftKings (NASDAQ: DKNG) and FanDuel. Recently, both sportsbook leaders ended their memberships with the American Gaming Association (AGA) as they refocus on prediction markets.
FanDuel Predicts recently launched in states where sports betting is not offered, while DraftKings Predictions is anticipated to debut shortly.