Coinbase expects US prediction markets to expand into mainstream finance
Coinbase said in its 2026 Crypto Market Outlook that US prediction markets could become more integrated with mainstream finance as liquidity and participation increase. It expects about 12 platforms currently operating in the US to grow in number by 2026, while warning that competition could fragment liquidity. The company also said unclear tax treatment and disputes over federal and state oversight may affect the sector.
Operators and platforms face uncertainty over liquidity, tax treatment and which authorities will oversee event contracts.