Seven-figure PR Campaign Begins With Insider Trading Ad From Prediction Market Coalition

The Coalition for Prediction Markets has launched a high-profile advocacy campaign for transparency and stricter industry standards with a full-page advertisement in the Washington Post on 28 January. 

This move responds publicly to the increased scrutiny around the integrity of event-based contracts. The trade group including Coinbase, Crypto.com, Kalshi, Robinhood and Underdog, published the advertisement to reiterate that insider trading is prohibited under the Commodity Futures Trading Commission rules. They demand a clear distinction between legal domestic platforms and offshore entities. 

According to comments shared with Business Insider, the ad kickstarts a “seven-figure” PR and marketing push scheduled by the coalition to run over the coming months. 

Polymarket trades trigger political pressure

The campaign follows a period of heightened scrutiny on prediction markets after a series of controversial trades on Polymarket. In early January, an anonymous user reportedly turned roughly $30,000 into more than $400,000 by wagering on the removal of Venezuelan leader Nicolás Maduro shortly before his capture by US forces.

The trade’s timing prompted allegations that the user may have had access to material non-public information. While Polymarket is not a member of the coalition, the incident has triggered debates about the risks of tying geopolitical outcomes to event-based contracts.

The controversy has led to federal legislators considering the Public Integrity in Financial Prediction Markets Act of 2026. This proposal would prohibit government officials from trading on contracts linked to their official responsibilities.

Diverging views on insider information

Shayne Coplan, CEO of Polymarket, has publicly addressed the issue of insider trading from a position that differs from traditional financial regulation. In interviews and televised appearances, including a segment on 60 Minutes, Coplan suggested that insider trading could improve price discovery by pushing information into the market more quickly.

He has argued that prediction markets offer a more accurate way to forecast real-world outcomes than polling or expert opinion. This stance has drawn criticism from regulators and industry peers who see insider trading as a threat to market integrity.

Coalition pushes for regulatory alignment

The coalition’s advertisement takes a firm opposing view, arguing that prediction markets are only credible financial tools if they follow the same anti-manipulation standards as other derivatives markets. Members point to existing CFTC rules as a sufficient legal basis for enforcement, provided the platforms are regulated.

By funding a large-scale PR effort, the group seeks to separate its members from the reputational fallout linked to unregulated offshore trading. The coalition maintains that strong federal oversight is key to preventing market manipulation and ensuring prediction markets are not used to profit from confidential government or corporate actions.