Robinhood Targets Crypto.com for Prediction Markets Amid CFTC Legal Clash

Woofun AI reports that Robinhood is actively negotiating with Crypto.com to integrate the exchange’s yes-or-no event contracts into its platform, aiming to broaden its prediction markets offering. This strategic move seeks to diversify supply sources beyond existing partners, leveraging Crypto.com’s infrastructure to enhance user engagement in speculative trading instruments.

The expansion follows the initial launch of Robinhood’s prediction markets hub in March 2025, which relied on Kalshi to satisfy US Commodity Futures Trading Commission (CFTC) compliance mandates. Subsequently, the platform integrated ForecastEx and Rotella to further stabilize its operational framework. These partnerships were established to navigate the complex regulatory environment while maintaining service continuity for users seeking event-based financial products.

Bernstein analysts recently elevated Robinhood’s (HOOD) price target to $160 from $130, driven by optimistic projections for prediction markets and tokenized equities.

Woofun AI data shows Bernstein forecasts Robinhood’s prediction market revenue could hit $1.7 billion by 2028, with total industry volumes potentially reaching $1 trillion by 2030. This financial outlook underscores the sector’s growth trajectory, despite current market volatility and regulatory uncertainties.

However, the industry faces persistent legal friction between federal and state authorities. The CFTC asserts "exclusive jurisdiction" over event contracts, while multiple state gaming authorities have filed lawsuits to restrict or block these platforms. This jurisdictional conflict remains a critical risk factor, potentially impacting the scalability and long-term viability of prediction market operations in the United States.