Coinbase: The Big and Beautiful Act may accelerate the adoption of prediction markets
TL;DR
Coinbase argues that the Bigger & Beautiful Act could increase taxes for some taxpayers, making prediction markets a tax-flexible alternative. The company is partnering with Kalshi and pushing for federal CFTC regulation through lawsuits.
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Odaily Odaily that Coinbase stated that the Bigger & Beautiful Act signed by Trump will restrict the deduction of profits from losses, potentially subjecting some taxpayers to taxes even if they are generally unprofitable. The company believes that prediction markets, due to their contractual nature, may offer a more flexible alternative for tax treatment. Coinbase has partnered with Kalshi to promote prediction markets and has filed lawsuits in Michigan, Illinois, and Connecticut, advocating for unified regulation by the federal CFTC.