Cboe, Crypto.com, Jupiter, Hyperliquid, Kalshi, and Polymarket all moved deeper into prediction markets this week. The push was broad and fast. At the same time, legal and policy pressure increased as courts and lawmakers examined compliance, licensing, and market oversight.
Exchanges and crypto platforms add new products
According to reports, Cboe Global Markets has been exploring a regulated yes-or-no product inside a traditional options structure. The exchange has reportedly started early talks with brokerages and market makers as it works on how those contracts could be set up.
Crypto-native firms were active as well. On Feb. 4, Crypto.com spun off its prediction markets unit into a standalone app called OG. The company said trading activity in the segment grew by about 40 times over the past six months, a sharp increase that supported the separate launch.
Decentralized trading venues followed the same direction. On Feb. 2, Jupiter said it planned to integrate Polymarket into its Solana-based platform. That came after an earlier partnership with Kalshi that brought offchain contracts onto Solana. Hyperliquid also proposed adding prediction markets through fully collateralized outcome contracts. CoinMarketCap data showed Hyperliquid’s HYPE token gained about 15% week over week even as the broader crypto market sold off.
Nevada blocks some Polymarket contracts while Coinbase gets time
Regulatory scrutiny rose alongside the product expansion. In Nevada, a state court issued a temporary restraining order against Polymarket, saying certain contracts appeared similar to unlicensed sports betting. As a result, Polymarket had to stop offering specific products to residents in the state. A later hearing will decide whether those restrictions stay in place.
Coinbase faced a different outcome in the same state. On Feb. 3, a judge declined to immediately block Coinbase’s prediction market product and allowed time for a response. Coinbase had previously announced a nationwide partnership with Kalshi.
Monitoring tools and political pressure move to the front
The debate is no longer only about licensing. Kalshi said it expanded monitoring and hired outside experts ahead of the Super Bowl to detect insider trading and market manipulation. U.S. lawmakers also proposed legislation last month aimed at alleged insider trading in prediction markets.
Competition between platforms also became public-facing. In New York City, Kalshi and Polymarket ran competing grocery giveaways. Kalshi partnered with a Manhattan store, while Polymarket announced grocery support and a $1 million donation to a food bank. The race for users is now showing up not just in contract listings, but in branding and public campaigns.