Crypto.com and Kalshi said they formed the Coalition for Prediction Markets with Coinbase, Robinhood and Underdog. The group says it will promote federal oversight and nationwide integrity standards, and oppose state-level measures it considers overreach.
The coalition plans to advocate for federal standards as state regulators challenge sports event contracts.
The day’s most important stories, free. One email a day.
The Coalition for Prediction Markets has asked the CFTC to define “gaming” narrowly in its rules, arguing that the term should cover casino-style games rather than sports-related event contracts. The CFTC rule restricts contracts linked to gaming and specified other activities; state regulators maintain that sports contracts fall under state betting laws, while the commission has yet to decide whether to adjust its rules.
The Gambling Is Not Investing coalition, launched by Rep. Mick Mulvaney, aims to persuade legislators that prediction markets offer illegal gambling, according to the report. The coalition argues that these products bypass gambling rules and consumer protections; prediction markets dispute that characterisation and cite Commodity Futures Trading Commission oversight. The CFTC is considering how to regulate the platforms, while its chair has threatened court action against challengers to its authority.
Gambling is Not Investing (GINI) named Mick Mulvaney its executive director, according to a report published on 3 March 2026. The coalition opposes sports event contracts offered by prediction markets and argues that they should face the same standards as licensed sportsbooks. It cited Kalshi among the platforms it believes should be subject to those standards.
Underdog filed a federal lawsuit against Connecticut officials after the state Department of Consumer Protection ordered it and eight other companies to stop offering or advertising sports-event contracts and let users withdraw existing funds. The company asked the court to block state enforcement, arguing that federal law gives the Commodity Futures Trading Commission authority over its event contracts; Connecticut officials say the contracts breach state gaming rules.
The Coalition for Prediction Markets said Sean Patrick Maloney will become its president and chief executive, while Patrick McHenry will join as a senior adviser. The appointments add two former members of Congress to the group, which was formed by Crypto.com and Kalshi last month.