Kalshi and Crypto.com Launch Coalition to Fight State Bans

• Kalshi and Crypto.com formed a coalition to press for federal prediction market rules
• Coinbase, Robinhood, and Underdog joined the coalition as state pressure builds
• The coalition says 2025 volumes grew fast, pushing regulation to the forefront

In a unified bid to secure federal regulatory supremacy, industry giants Kalshi and Crypto.com have launched an alliance, including Coinbase, Robinhood, and Underdog, to form the Coalition for Prediction Markets (CPM). 

In its announcement, the firms noted that the move is to defend the sector against a rising tide of state-level enforcement actions by cementing Commodity Futures Trading Commission (CFTC) oversight as the sole standard.

Related: Polymarket and Kalshi Face a New Rival as Gemini Enters Prediction Markets With Oversight

Prediction Market is Rapidly Spreading Among Americans

The announcement highlighted the Prediction Market’s rapid growth and spread among the American public, serving as a tool for understanding the shifting economy, cultural, and political trends. According to Kalshi and Crypto.com, nearly half of the American under-45 population has engaged with an online prediction market, revealing the technology’s encroachment into the mainstream.

According to Matt David, Executive Board Member of the Coalition and President of North America & Chief Corporate Affairs Officer at Crypto.com, the U.S. is the biggest frontier for prediction markets, and a unified industry voice for the region is necessary. David described the emerging industry as a new layer of civic infrastructure that gives people cleaner insight and helps institutions make clearer decisions.

Coalition Pushes Back on State Moves to Treat Event Contracts Like Gambling

Notably, there is a recent increase in the activity level within the prediction market, with several state casino regulators attempting to extend their authority on an industry previously governed by federal law. 

Related: Connecticut Regulators Order Kalshi, Robinhood, and Crypto.com to Halt ‘Illegal’ Sports Betting

The stakeholders believe that the emerging trend could create confusion, restrict customer access, and push Americans toward offshore or unregulated platforms. Therefore, the CPM aims to pursue a unified CFTC regulation for prediction markets across the American region.

Coalition Cites 2025 Volume Growth

Sara Slane, Executive Board Member of the Coalition and Head of Corporate Development at Kalshi, believes having a unified regulatory protocol will provide clarity for the industry. According to Slane, that has been Kalshi’s goal from the onset—a unified system that will promote nationwide regulatory consistency.

According to reports, prediction markets have repeatedly outperformed traditional polling by roughly 30%. As of October, the combined trading volume of the prediction markets in 2025 reached approximately $28 billion.