Crypto.com Unveils US Prediction Markets Platform as Legal Pressure Mounts on Rivals

Crypto.com, a leading global cryptocurrency exchange, announced its strategic expansion into the US prediction markets sector this week, launching a new, fully compliant platform aimed at American users. The launch comes at a critical time, as established competitors in both centralized and decentralized prediction markets face intense scrutiny and increasing enforcement action from US regulators, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

The new platform, dubbed ‘CryptoPredict US,’ is designed to operate strictly within the confines of existing US financial regulations. Unlike many decentralized autonomous organizations (DAOs) and offshore competitors, Crypto.com is emphasizing stringent Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols. Initial market offerings are expected to focus on non-political and non-security-related events, such as sporting outcomes, verified economic indicators, and entertainment results, deliberately avoiding the binary options and political markets that have drawn regulatory ire.

Regulators have recently intensified efforts to classify specific prediction market offerings as illegal off-exchange swaps or unregistered futures contracts, forcing several high-profile platforms to cease US operations or pay substantial fines. This crackdown has created a significant void in the US market, which Crypto.com is aggressively moving to fill.

A spokesperson for Crypto.com commented on the strategic timing: ‘We recognized the substantial user demand for regulated, transparent prediction markets. Our investment in compliance infrastructure ensures that US users can participate in this valuable form of information aggregation without the uncertainty currently plaguing less regulated providers. We are setting a new standard for compliance in this burgeoning sector.’

Analysts view Crypto.com’s move as a calculated risk, leveraging its existing regulatory relationships to establish an early compliant foothold. If successful, CryptoPredict US could fundamentally reshape the landscape, drawing liquidity away from decentralized platforms and establishing regulated entities as the standard bearers for US prediction trading.

Source: Crypto.com Unveils US Prediction Markets Platform as Legal Pressure Mounts on Rivals