- Cboe, Crypto.com, Hyperliquid and others launched or expanded prediction markets citing fast growth in event-based trading.
- Legal pressure increased as Nevada blocked some Polymarket contracts while Coinbase avoided immediate restrictions.
- Lawmakers and platforms tightened oversight with new monitoring tools amid insider trading and licensing concerns.
Major trading platforms across crypto and traditional finance moved aggressively into prediction markets this week, even as regulators raised legal concerns. The developments involve firms including Cboe, Crypto.com, Jupiter, Hyperliquid, Kalshi, and Polymarket. Companies cited rising demand for event-based trading, while courts and lawmakers reviewed compliance, licensing, and oversight issues.
Trading Platforms Accelerate Event-Based Products
At least six trading firms announced or advanced prediction market initiatives during the week. Notably, Cboe Global Markets explored a regulated yes-or-no product within a traditional options framework, according to reports. The exchange reportedly began early discussions with brokerages and market makers to structure the contracts.
Meanwhile, crypto platforms expanded offerings. On Feb. 4, Crypto.com spun off its prediction markets unit into a standalone app called OG. The company cited roughly fortyfold growth in trading activity over six months.
Decentralized platforms followed closely. On Feb. 2, Jupiter announced plans to integrate Polymarket into its Solana-based trading platform. The move followed an earlier partnership with Kalshi that brought off-chain contracts to Solana.
Meanwhile, Hyperliquid proposed adding prediction markets through fully collateralized outcome contracts. According to CoinMarketCap data, Hyperliquid’s HYPE token rose about 15% week over week, despite a broader crypto sell-off.
Legal Pressure Builds Around Prediction Markets
However, regulatory scrutiny intensified alongside expansion. In Nevada, a state court issued a temporary restraining order against Polymarket. The court cited concerns that certain contracts resembled unlicensed sports betting.
The ruling forced Polymarket to halt specific offerings to Nevada residents. A follow-up hearing will determine whether restrictions remain.
By contrast, Coinbase avoided immediate action in Nevada. On Feb. 3, a judge declined to block Coinbase’s prediction market product, allowing time for a response. Earlier, Coinbase announced a nationwide partnership with Kalshi.
Oversight, Lawmakers, and Public Competition
As scrutiny increased, operators adjusted controls. Kalshi said it expanded monitoring and hired external experts to detect insider trading and manipulation ahead of the Super Bowl.
Meanwhile, U.S. lawmakers proposed legislation last month targeting alleged insider trading in prediction markets.
Public competition also emerged. In New York City, Kalshi and Polymarket hosted competing grocery giveaways. Kalshi partnered with a Manhattan store, while Polymarket announced grocery support and a one-million-dollar food bank donation.
