Robinhood Technologies has teamed up with Crypto.com, Coinbase, Kalshi and others to form the Coalition for Prediction Markets. The group’s stated goal is to establish industry-wide guardrails that prevent insider trading and ensure equal footing for all participants. By uniting under a common banner, Robinhood hopes to influence forthcoming CFTC rule-making, preempt state-level challenges to its business model and solidify its status as a federally regulated platform. The formation of this coalition signals Robinhood’s strategic pivot into prediction markets and underscores management’s belief that proactive self-regulation will protect both the company’s brand and its customer base as regulatory scrutiny intensifies.

Robinhood’s stock has slumped into a bear market this year, trading approximately 30% below its October peak and hitting its lowest level since late November. This downturn reflects waning investor enthusiasm following a period of elevated volatility in the broader fintech sector and renewed questions over Robinhood’s path to profitability. Trading volumes have moderated as retail sellers have largely stepped aside, suggesting a lack of near-term catalysts. Analysts are now reassessing earnings projections for the remainder of the fiscal year, with consensus estimates pointing to flat revenue growth and modest operating losses before interest, taxes, depreciation and amortization.