Kalshi Launches Prediction Markets Coalition with Leaders

Kalshi CEO Tarek Mansour announced the formation of the Coalition for Prediction Markets, partnering with major industry players including Crypto.com, Coinbase, Underdog, and Robinhood. The coalition represents an industry-backed initiative to address growing political and regulatory scrutiny facing the prediction markets sector.

Market Growth Drives Regulatory Attention

Mansour highlighted the sector’s significant expansion, citing $150 billion in annual trading volumes. The prediction markets industry has gained traction among economists, policymakers, and journalists as a tool for forecasting outcomes across various domains.

The coalition’s primary mission centers on establishing a clear distinction between prediction markets and gambling products. Mansour emphasized that prediction markets operate fundamentally differently from gambling platforms, as they function without a house taking the opposite side of trades. Instead, users trade with one another in an open, competitive marketplace.

Federal Oversight and Regulatory Framework

The coalition plans to engage directly with policymakers to establish clear federal oversight for prediction markets. A key objective involves removing prediction markets from state-level gambling regulations by creating uniform rules similar to those governing other modern financial markets.

This approach would provide regulatory clarity across jurisdictions and position prediction markets within existing financial regulatory frameworks rather than gaming regulations.

CFTC Signals Conditional Acceptance

The Commodity Futures Trading Commission (CFTC) has drawn close attention from prediction market operators following recent regulatory developments. The CFTC has indicated conditional acceptance of several arguments advanced by the coalition.

On multiple occasions, the CFTC has acknowledged that many operators provide services within established regulatory limits, stating that no enforcement action is planned against their core activities. This position has created an environment of regulatory tolerance for prediction market platforms that maintain compliance with existing rules.

The coalition’s formation comes at a critical juncture for the prediction markets industry, as platforms seek to establish legitimacy and regulatory certainty while navigating the complex landscape of federal and state oversight.

Source: Kalshi