New Coalition For Prediction Markets Formed By Top Exchanges
A new national lobbying group, Coalition for Prediction Markets, was announced today. The CPM is “dedicated to preserving safe, transparent, and federally supervised access to prediction markets,” according to a news release.
The initial members of the CPM are leading prediction platforms Kalshi and Crypto.com, top DFS operator Underdog, retail broker Robinhood, and crypto exchange Coinbase, which is expected to announce its prediction market plans later this month. The alliance will work with regulators, legislators, and the public to develop “clear, fair rules that keep prediction markets accessible to everyone.”
Matt David, President of North America and Chief Corporate Affairs Officer at Crypto.com, will serve as a CPM executive board member, as will Sara Slane, Kalshi’s Head of Corporate Development.
“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,” David said in the release. “Prediction markets are a new layer of civic infrastructure – public-good technology that gives people clearer insight and helps institutions make better decisions. They democratize financial participation by rewarding what people know, not who they know. As consumer interest accelerates and regulation evolves, this coalition will champion responsible, transparent growth to ensure the benefits of prediction markets reach the broader public.”
Today, we’re proud to launch the Coalition for Prediction Markets (CPM), a unified voice working to preserve fair, safe, transparent, and federally supervised access to prediction markets for everyone.@kalshi @cryptocom @RobinhoodApp @coinbase @Underdog…
— Coalition for Prediction Markets (@PredictAction) December 11, 2025
CPM to push back against “state casino regulators”
The CPM formation announcement comes as the prediction market industry is booming in the U.S., with platforms experiencing peak trading volume and rising mainstream interest.
At the same time, federally regulated prediction market platforms are increasingly facing legal challenges related to sports event contracts. Several states with a legal sports betting market say those contracts amount to unauthorized sports wagers and have been fighting to stop them from being offered in their jurisdictions.
The CPM will allow the prediction platforms to fight back against those state challenges with a unified voice, the group says. The news release states that the actions by “several state casino regulators” are an effort to “extend their authority into a space long governed under federal law — a shift that creates confusion, restricts consumer access, and pushes Americans toward offshore or unregulated platforms.”
“From day one, we wanted to be regulated. 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,” Kalshi’s Slane said. “Americans deserve clarity, not 50 conflicting interpretations. As the first federally regulated prediction market, Kalshi saw firsthand how quickly this space was growing – and how urgently a unified industry voice was needed to advocate for access and consistency nationwide.”
CPM strives to educate public and policymakers on market integrity
The press announcement says that the CPM will initially focus on “reinforcing the federal framework governing prediction markets,” which includes educating the public and policymakers about the integrity of that framework.
The CPM website lays out the group’s priorities:
- Federal clarity and consistency, including the preservation of the Commodity Exchange Act
- Market integrity and transparency to maintain public trust
- Consumer access and education
- Responsible innovation through a stable regulatory environment
The CPM website also includes an overview of the prediction market industry, as well as a “Resources” page that includes industry-friendly press coverage.
There’s also a “Get Involved” section where the CPM encourages companies, consumers, academics and advocates to share their experiences. “Real-world experiences help policymakers understand why these markets deserve clear, consistent rules that protect and expand consumer choice,” the page states.
Operators exit American Gaming Association over prediction market moves
The CPM is similar to gambling industry groups like the Sports Betting Alliance and the American Gaming Association, which has sided with state-level regulators and is opposed to prediction market platforms offering sports event contract trading.
Some AGA members have left that coalition after deciding to enter the prediction market fray. DraftKings and FanDuel are gearing up to launch new prediction market products in states in which they currently do not operate their sportsbooks. Both operators announced in November that they would be departing the AGA.
“We recognize this (prediction market) direction is not aligned with the American Gaming Association’s current priorities for its member operators,” a FanDuel spokesperson told CNBC at the time.
Fanatics, which earlier this month became the first major U.S. sports betting operator to launch prediction markets, reportedly also gave up their AGA membership.
Meanwhile, CPM member Underdog has given up on its online sports betting efforts and appears to be more fully pivoting to prediction markets (while also retaining its DFS products). The company announced yesterday that it was closing its sportsbook operations in North Carolina, the only state in which Underdog operated a traditional online sports betting platform.
An Underdog spokesperson told Sports Betting Dime that it intends to soon launch its prediction market product, featuring event contracts powered by Crytpo.com, in North Carolina.