In a significant move to shape its future, the rapidly expanding prediction market industry has forged a powerful national alliance, the Coalition for Prediction Markets (CPM). This collaborative effort aims to solidify federal oversight and legitimize the sector, proactively addressing its regulatory challenges.
A Unified Front for Federal Oversight
Formed by industry leaders Kalshi and Crypto.com, the CPM unites a diverse group including crypto giants like Coinbase, retail trading powerhouse Robinhood, and sports gaming operator Underdog. Its primary mission is to establish clear federal regulatory standards and integrity benchmarks, countering state-level attempts to restrict the industry by mislabeling it as mere gambling. The coalition seeks to present prediction markets as valuable crowdsourced forecasting tools, rather than unregulated games of chance.
Defending Against "Gambling" Accusations and Pushing for Legitimacy
The industry is actively challenging critics who dismiss these platforms as "online gambling." The CPM emphasizes its commitment to strong federal safeguards, having engaged extensively with the CFTC to prevent insider trading, protect consumers, and ensure transparent, corruption-free markets. This robust oversight is crucial for building legitimacy and attracting continued institutional investment. A recent federal court ruling further reinforced this stance, temporarily blocking state enforcement actions against Kalshi and upholding the argument that prediction markets function as federally regulated financial markets.
