#What Are Robinhood and Crypto.com Doing in Prediction Markets?
Robinhood and Crypto.com are increasingly focused on the prediction markets sector. This quickly expanding area of finance allows users to trade contracts based on real-world occurrences like elections, sports events, and economic indicators. Recently, reports indicate that both companies are engaged in discussions to enhance their foothold in this space.
#How Are They Establishing Their Market Presence?
Robinhood took the initiative by introducing its Prediction Markets Hub in 2025, collaborating with Kalshi, which is one of the few event contract exchanges regulated by the CFTC in the U.S. In its inaugural year, around 11 to 12 billion contracts were traded, with significant revenue that began to rival Robinhood's crypto trading segment in some quarters.
To bolster its position further, Robinhood partnered with Susquehanna, a quantitative trading firm, to create its own CFTC-licensed futures and derivatives exchange, which began operations in early 2026.
On the other hand, Crypto.com launched its CFTC-regulated prediction markets platform, referred to as OG, in February 2026. This move positioned Crypto.com as a direct competitor to Robinhood, as well as to existing regulated entities in the event contracts arena.
A sharper way to see the markets in just 5 minutes.
Same news, different lens. We cut through the noise and hand you the overlooked ideas and the deeper read the crowd misses. Join 38,000+ investors seeing the markets differently.
#What Are the Legal Challenges in This Sector?
The regulatory environment surrounding prediction markets, particularly sports-related event contracts, is complex. Various U.S. states have raised concerns, with some regulators identifying these products as unlicensed gambling. Both Robinhood and Crypto.com have encountered legal challenges linked to this issue.
In response, Robinhood, along with Coinbase and other industry participants, formed the Coalition for Prediction Markets in December 2025. This lobbying group aims to advocate for unified federal regulation, seeking to avoid the inconsistencies created by state-level interpretations of these products.
#What Should Investors and Traders Consider?
Data from Robinhood reveals that prediction markets, when integrated into a retail brokerage with a substantial user base, can generate engagement across a wide range of events beyond elections. However, both Robinhood and Crypto.com must navigate legal uncertainties at the state level concerning sports contracts, which could lead to product adjustments or exiting certain markets if the rulings are unfavorable. The success of the Coalition for Prediction Markets in influencing federal policy over the next 12 to 18 months will be critical in determining if the current growth trajectory can be maintained or if it will face significant obstacles.