The Coalition for Prediction Markets (CPM), a lobbying organization that advocates for the burgeoning prediction markets sector, announced on Tuesday that it has appointed two former U.S. politicians to key leadership positions, indicating a bipartisan effort amidst heightened regulatory scrutiny in the industry.
Former Democratic U.S. Representative Sean Patrick Maloney has been designated as the Chief Executive Officer and President of the coalition, while former Republican Congressman Patrick McHenry, known for his previous role as chair of the House Financial Services Committee, will serve as a Senior Advisor.
These appointments come during a period when prediction markets are increasingly under the watchful eye of state regulators aiming to assert control over these platforms. Participants in the industry contend that fragmented regulations may jeopardize transparency and consumer protections, as these markets have traditionally functioned under federal jurisdiction.
Prediction markets enable users to buy and sell contracts linked to actual outcomes, encompassing economic indicators and political events, and are overseen at the federal level by the Commodity Futures Trading Commission (CFTC).
Maloney, who represented New York in Congress for a decade, previously led the Commodity Markets and Digital Assets Subcommittee which oversees the CFTC, bringing valuable expertise in financial regulation, digital assets, and market frameworks. He emphasized the importance of clear and consistent regulations for the sector’s prosperity.
“Prediction markets are emerging as one of the most effective means for aggregating information and predicting real-world events,” Maloney stated. “The potential of this industry relies on transparent rules, thoughtful oversight, and regulatory clarity. CPM is dedicated to ensuring policymakers strike the right balance, and I’m eager to spearhead that initiative.”
McHenry has served in Congress for two decades, holding multiple senior leadership positions, including chairman of the Financial Services Committee and its Oversight and Investigations Subcommittee. In his role as senior advisor, he will advise on financial regulations, market structures, and interactions with federal policymakers. Additionally, he is a senior advisor at investment bank Lazard.
“Prediction markets have historically operated within a federal regulatory structure aimed at fostering transparency and safeguarding consumers,” McHenry stated. “As these markets expand, it is vital for both consumers and platforms to receive clear, consistent guidelines.”
“Over the last decade, I have been privileged to guide the nation’s strategy towards regulating innovative financial instruments, and I am excited to support CPM in charting the future,” he added.
CPM was established last month by Crypto.com and Kalshi, with members that include Coinbase Global, Robinhood Markets, and sports gaming company Underdog.
The sector is facing lobbying pressures from the American Gaming Association (AGA) and the Indian Gaming Association (IGA), both of which are advocating for Congress to enhance its oversight of sports-related event contracts, claiming they pose a risk to existing state and tribal gaming regulations.
CPM indicated that these appointments signify a new chapter focused on engaging policymakers, ensuring the continuity of prediction markets within a stable federal regulatory framework.
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