Coinbase launches prediction markets in all 50 US states via Kalshi

Coinbase just dropped the mic — they're live with prediction markets across all 50 states. Partnering with Kalshi, they're letting users bet on literally anything: sports, politics, culture, you name it. This is their "everything exchange" strategy in action, announced back in December.

Timing is everything — this launch hits just a week before the Super Bowl, one of the biggest betting events in the US. Event contracts on platforms like Kalshi and Polymarket let users bet on outcomes, with probabilities set by market participation.

Coinbase's move into prediction markets isn't just talk — they acquired The Clearing Company in December to make it happen. They're building out their "everything exchange" vision, which includes stock trading, tokenized assets, and now, prediction markets.

Here's the catch: Kalshi is regulated by the CFTC at the federal level, but they're getting sued by at least four states (Massachusetts and Tennessee included) for offering sports bets without a gaming license. Polymarket is in the same hot seat in Tennessee.

Things got spicy when an anonymous user reportedly made over $400,000 betting on Polymarket about Venezuelan President Nicolás Maduro's capture. That triggered lawmakers to call out insider trading on political bets.

Coinbase is betting big on prediction markets, but they're stepping into a regulatory minefield. With state lawsuits flying and lawmakers watching, this could get messy fast.