Coinbase has issued a warning that President Trump’s proposed Big Beautiful Bill could drive gamblers toward prediction markets, a development that could shift the regulatory landscape for crypto and betting.

What Happened

In a recent statement, Coinbase cautioned that the bill’s provisions might encourage gamblers to seek alternative betting venues, particularly prediction markets. The firm noted that its own partnership with Kalshi—a U.S. exchange for event-based contracts—positions it to capture this emerging demand.

Why It Matters for Bitcoin

Prediction markets rely on blockchain technology and could integrate with Bitcoin’s network. If the bill pushes more activity into this space, it may influence how regulators view Bitcoin-based derivatives and betting products, potentially tightening oversight.

Market Impact

The announcement arrived amid an extreme fear sentiment (Fear & Greed Index 16) and has added uncertainty to the market. While Bitcoin’s price has remained largely unchanged, traders are watching for any regulatory signals that could trigger volatility.

What to Watch Next

  • Progress of the Big Beautiful Bill in Congress
  • Coinbase’s further expansion into prediction markets
  • Regulatory responses to Kalshi’s operations and similar platforms
  • Potential impact on Bitcoin-based derivatives and futures

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Source

The Block – Coinbase warns Trump’s Big Beautiful Bill could push gamblers into prediction markets