Kalshi, Crypto.com rally industry giants to form prediction markets coalition – Details

In a surprising episode of cross-sector unity, the fast-growing predictions market industry has come together to form a national alliance to defend its regulatory future.

Kalshi X Crypto.com

Crypto exchange Kalshi and platform Crypto.com have launched the Coalition for Prediction Markets (CPM), an aggressive advocacy group. It brings together members ranging from crypto giants like Coinbase to retail trading powerhouse Robinhood and sports gaming operator Underdog.

With the market now moving billions, the CPM is pushing to solidify federal oversight.

According to Nick Jones, founder of crypto firm Zumo, the coalition aims to further legitimize the sector by “strengthening operating rules and setting a higher bar for integrity standards.”

The coalition also seeks to stop states from restricting the industry, which uses collective intelligence to predict everything from Fed rates to elections, by treating it as mere gambling.

What are critics so worried about?

This news has fueled debate, as supporters argue that these platforms serve as valuable crowdsourced forecasting tools.

For instance, Matt David, Executive Board member of CPM, noted, 

“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.”

Critics, however, claim the platforms are “nothing more than online gambling,” a charge the CPM is now prepared to fight with a unified, federally focused position.

Despite the criticism though, investors continue to show strong confidence in the sector. Both Kalshi and its peer Polymarket are expanding rapidly in 2025 too.

Immediate action and more

Therefore, the coalition is taking a proactive and not merely a defensive approach.

It plans to strengthen the federal framework for prediction markets, set nationwide integrity standards to curb insider trading, and vigorously push back against state-level overreach.

This commitment to regulated growth defines the industry’s narrative.

According to Sara Slane, Head of Corporate Development at Kalshi and executive member of the coalition,

“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.”

For new mega-valuation players, CFTC oversight provides the foundation they need for legitimacy and continued institutional investment.

At the same time, a federal judge in Connecticut granted Kalshi a temporary halt on state enforcement actions, blocking a cease-and-desist order until key hearings in early 2026.

This ruling has strengthened the industry’s argument that prediction markets function as federally regulated financial markets, not gambling.

Final Thoughts

• The creation of the CPM shows the prediction market industry is no longer acting alone.
• With trading volumes growing and valuations soaring, the sector is pushing hard for clear federal rules.