The Coalition for Prediction Markets, a group recently formed by leading prediction market operators, bought a full-page advertisement in the Washington Post on 28 January to advocate for stricter industry standards and transparency.
The move by the trade group, which includes Coinbase, Crypto.com, Kalshi, Robinhood and Underdog as members, serves a more public response to recent scrutiny regarding the integrity of event-based contracts.
The advertisement explicitly states that insider trading is prohibited by the Commodity Futures Trading Commission (CFTC) and calls for a clear distinction between regulated domestic platforms and offshore entities.
According to comments provided to Business Insider, the ad marks the beginning of a “seven-figure” PR and marketing campaign on behalf of coalition members, set to unfold over the coming months.
The advocacy campaign follows a period of intense pressure on the sector after a series of lucrative trades on Polymarket.
In early January, an anonymous trader gained more than $400,000 after wagering approximately $30,000 on the removal of Nicolás Maduro just hours before American forces captured the then-president of Venezuela.
The timing of the transaction led to allegations that the user possessed material non-public information regarding the military operation.
While Polymarket is not a member of the coalition, the incident has prompted federal legislators to consider the Public Integrity in Financial Prediction Markets Act of 2026, which would bar government officials from trading on contracts tied to their official duties.
Polymarket boss appears to back use of non-public information
Shayne Coplan, the CEO of Polymarket, has addressed the impact of insider trading with a perspective that differs from traditional financial regulations.
In public appearances and interviews, including on a segment on 60 Minutes, Coplan suggested that insider trading could help disseminate data more broadly and increase the accuracy of market signals.
He has described prediction markets platforms as a superior method for price discovery and forecasting real-world outcomes compared to traditional polling or expert analysis.
In contrast, the coalition advertisement argues that for prediction markets to function as legitimate financial tools, they must adhere to the same anti-manipulation frameworks as other derivatives.
Members of the group emphasise that existing CFTC rules already provide a basis for policing such activity.
By funding the reportedly seven-figure PR and marketing effort, the coalition aims to distance its members from the reputational risks associated with unregulated offshore trading.
The group maintains that federal oversight is the primary mechanism to solve the problem of market manipulation and ensure that these platforms are not used to profit from confidential government or corporate actions.