The coalition’s founding members include Coinbase, Robinhood and Underdog. The group said it will advocate for “safe, transparent, and federally supervised access to prediction markets,” noting that nearly half of Americans under 45 have used online prediction platforms.
CPM said the rise of conflicting state rules “undermines the very guardrails that keep markets fair and prevent insider advantage,” and risks splintering an industry currently regulated by the U.S. Commodity Futures Trading Commission (CFTC).
The group said its early priorities include “reinforcing the federal framework governing prediction markets” and establishing “Central to this work is establishing and educating on nationwide standards for integrity – guardrails that prevent insider trading and ensure all participants operate on equal footing.” It also plans to “defend against state-level overreach, including issues tied to sports, elections, and financial and economic indicators, and advance clear, consistent standards for integrity and transparency.”
The announcement follows escalating clashes with state regulators. Connecticut last week issued cease-and-desist orders to Kalshi, Robinhood and Crypto.com, arguing their sports-related event markets constitute unlicensed gambling. Nevada, Massachusetts, Maryland and New Jersey have taken similar positions.
Analysts say the dispute over whether states can override federal oversight is likely to reach the U.S. Supreme Court.
Matt David, Crypto.com’s president for North America, said the United States has become “the biggest frontier for prediction markets, and the momentum we are seeing makes a unified industry voice not just important but necessary.”
Sara Slane, head of corporate development at Kalshi, said the companies 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.” Americans, she added, “deserve clarity, not fifty conflicting interpretations.”
A recent Kalshi-backed poll found nearly 90% of respondents support prediction markets in their current form, and 79% favor federal, rather than state, regulation.
Kalshi’s expansion into sports markets in early 2025 has sharply increased regulatory attention. Sports contracts now account for about 90% of trading volume on the platform, helping push the company’s valuation to $11 billion. While the CFTC has not formally approved sports markets, it allows exchanges to self-certify contracts.
Polymarket, Kalshi’s closest competitor, is not part of the coalition, despite preparing a fuller return to the U.S. market following an $8 billion valuation backed by the parent of the New York Stock Exchange. CPM said additional companies are in talks to join but did not name them.
DraftKings and FanDuel, which are preparing to launch their own prediction products and recently quit the American Gaming Association (AGA) over disagreements on the issue, are viewed as potential additions. FanDuel Predicts is already live in some states, with DraftKings Predictions set to follow.
Fanatics also launched a prediction platform last week. PrizePicks and Fanatics Markets, both aligned with Crypto.com, are not part of the coalition. Underdog, which exited traditional sportsbook operations to focus on prediction markets, is included through its partnership with Crypto.com.
Dingnews.com 15/12/2025