Robinhood in talks with Crypto.com over prediction markets: WSJWhile prediction market companies in the US continue to face legal battles between state and federal authorities, Robinhood is reportedly considering expanding its services.

Robinhood is reportedly in discussions with the cryptocurrency exchange Crypto.com to expand its prediction markets offering by incorporating yes-or-no event contracts provided by Crypto.com. This development follows Robinhood’s initial launch of a prediction markets hub in March 2025, which was originally facilitated by Kalshi to comply with U.S. Commodity Futures Trading Commission (CFTC) regulations, and later supported by ForecastEx and Rotella.

The timing of these talks is notable as they come shortly after Bernstein analysts increased Robinhood’s stock price target from $130 to $160 per share. This adjustment reflects optimism about Robinhood's potential growth in prediction markets and tokenized equities, with Bernstein forecasting that revenue from prediction markets alone could reach $1.7 billion by 2028. Bernstein further estimated that the total market volume for prediction markets might reach $1 trillion by 2030.

Despite this promising outlook, the prediction markets sector in the United States faces significant legal challenges. The CFTC asserts exclusive regulatory jurisdiction over event contracts, while various state gaming authorities have filed lawsuits aiming to restrict or block these platforms’ operations. These ongoing disputes create regulatory uncertainty, which remains a critical factor influencing the future of prediction market offerings like those planned by Robinhood and Crypto.com.