The Coalition for Prediction Markets, a group which features registered members such as Kalshi, Robinhood and Crypto.com, will begin a “seven figure” public relations (PR) campaign in the hopes of advocating for regulated markets in the US.
The Coalition officially began its campaign on January 28 by taking out a full-page advertisement in The Washington Post, which states “CFTC regulated prediction markets (already) ban insider trading.”
Following recent concerns of insider trading within prediction market platforms, the campaign looks to define operators which are registered with the Commodity Futures Trading Commission (CFTC) and those which are currently unregulated.
The Coalition for Prediction Markets has stated its members, which also include Coinbase and Underdog at the time of writing, are willing to adhere to the “safe and transparent” trading that is supported by the CFTC.
The campaign is scheduled to roll out over the coming months and was formed after concerns were raised about Polymarket’s offering of event contract trading on the capture and arrest of Venezuelan President Nicolás Maduro.
While no claims of insider trading have been proven as of yet, a Polymarket user won $400,000 following Maduro’s arrest after trading approximately $30,000 on the operator’s global site, which cannot be accessed within the US.
Both the American Gaming Association and Indian Gaming Association responded to the insider trading claims, raising concerns of political contracts which “capitalize on tragedy, invite manipulation and undermine public trust.”
Kalshi and Crypto.com originally partnered on December 11 to form the Coalition for Prediction Markets, having named Sara Slane and Matt David as Executive Board Members within the announcement.
The Coalition for Prediction Markets appointed new leadership on January 13 in the shape of former congressmen Sean Patrick Maloney and Patrick McHenry
