Story perspectives

Prediction Markets Surge to $28 Billion Amid Regulatory Shift

12/12/2025

Summary

Story summary

In 2025, approximately $28 billion was traded in prediction markets after a regulatory shift by the Commodity Futures Trading Commission (CFTC).
Employers should update policies to address insider trading risks and protect confidential information.
The Coalition for Prediction Markets (CPM), formed by Crypto.com and Kalshi, advocates for federal regulation to ensure market integrity.
Kalshi is leading global expansion, connecting users in more than 140 countries despite state-level regulatory challenges.

History

Historical Context

The Commodity Futures Modernization Act of 2000, enacted on December 21, allowed unregulated trading of over-the-counter derivatives, significantly impacting financial markets. This deregulation facilitated the rise of prediction markets, projected to reach $28 billion by 2025, and organizations like the Coalition for Prediction Markets. The act's legacy continues as regulatory discussions evolve to address insider trading and market integrity across 140 countries.

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Story summary

In 2025, approximately $28 billion was traded in prediction markets after a regulatory shift by the Commodity Futures Trading Commission (CFTC).
Employers should update policies to address insider trading risks and protect confidential information.
The Coalition for Prediction Markets (CPM), formed by Crypto.com and Kalshi, advocates for federal regulation to ensure market integrity.
Kalshi is leading global expansion, connecting users in more than 140 countries despite state-level regulatory challenges.

1 / 2