Bipartisan hires give CPM political credibility and easier access to lawmakers amid regulatory scrutiny
The Coalition for Prediction Markets (CPM) announced today that it has appointed two former members of Congress to key roles.
Former Democratic Representative Sean Patrick Maloney will serve as CEO and President of the recently formed prediction market industry trade group, while former Republican Representative Patrick McHenry joins the group as a Senior Advisor.
The CPM will rely on the former government officials to help advocate for clear, consistent federal regulation of prediction markets, providing credibility and access to the group’s efforts. Maloney and McHenry are more than ceremonial hires; their experience and political networks could be central to the coalition’s influence.
“Together, Maloney and McHenry bring deep bipartisan experience shaping U.S. financial policy, strengthening consumer protections, and advancing responsible innovation, leadership that CPM will leverage as prediction markets become more mainstream,” the CPM wrote in a news release announcing the new roles.
Maloney wants ‘real rules, real accountability, and real protections’
The formation of the CPM was announced late last year amidst a deluge of legal actions against prediction market platforms from states that see their sports event contracts as nothing more than unlicensed sports betting. The states argue they have sole jurisdiction over these contracts under state gambling laws. Companies like Kalshi and Crypto.com have filed lawsuits in response to the various cease-and-desist orders, arguing that the Commodity Futures Trading Commission (CFTC) has exclusive oversight over what markets they offer.
Maloney served in the U.S. House of Representatives from 2013 to 2023, representing New York’s 18th district. During his tenure, Maloney chaired the House Agriculture Subcommittee on Commodity Exchanges, Energy, and Credit, which held hearings and considered legislation on the regulation of digital assets and the role of the CFTC.
Maloney shared his perspective on prediction markets in a video posted by CPM on X. In the video, he says that the markets offer “better insight into what the future holds” and that the recent rise of event contract trading has brought “risk management markets” to average Americans for the first time.
Maloney said that without clear rules for these markets, “consumers are pushed towards shady offshore platforms.”
“That’s why I support prediction markets with strong federal oversight,” Maloney said. “The CFTC regulates these markets just like the SEC oversees the New York Stock Exchange, ensuring transparency, fairness, and accountability. And it’s why I’m working with the (CPM) to codify existing federal rules and create a level playing field for responsible users. Let’s predict truth over noise. Let’s protect safe, fair markets. Let’s protect your freedom to know.”
In another post on X, Maloney said that he was joining the CPM to “help ensure these markets have real rules, real accountability, and real protections for the people using them.”
Kalshi responds to new CPM appointments
Founding members of the CPM include Crypto.com, Coinbase, Robinhood, and Underdog, as well as U.S. prediction market leader Kalshi. Sara Slane, Head of Corporate Development at Kalshi and an Executive Board Member with the CPM, celebrated Maloney and McHenry’s new roles, posting on X that they will help “promote and educate lawmakers on the value of prediction markets.”
Kalshi founder and CEO Tarek Mansour also responded to the new CPM hires, noting their bipartisan nature, which could potentially help networking efforts across all of Congress.
“In general, Republicans care about enabling access to free markets and protecting people’s freedom to choose what they do with their money, and Democrats care about customer protection and integrity,” Mansour wrote in an X post. “These are not mutually exclusive.”
New CPM leaders have opportunity to work with Congress right away
Maloney and McHenry will be able to get to work right away, as a piece of prediction market legislation is currently sitting in Congress . Kalshi has expressed support for Democratic U.S. Representative Ritchie Torres’ bill seeking to prevent “insider trading” in prediction markets by explicitly banning federal officials and staff from using material nonpublic information to trade on prediction platforms.
The bill, inspired by accusations of insider trading related to a lucrative, high‑profile trade on Polymarket’s global platform related to former Venezuelan president Nicolás Maduro’s departure from office, is backed by more than 30 House Democrats. Several Senate Democrats also recently sent a letter to the CFTC pressing for better oversight and enforcement to prevent manipulation in prediction markets.
Former GOP Representative McHenry served 20 years in the House and was elected chair of the House Financial Services Committee, on which he served throughout his tenure. As the CPM’s new Senior Advisor, McHenry’s strategic guidance on financial regulation and engagement with federal lawmakers could be pivotal in persuading Republican members of Congress to back or co‑sponsor measures like Torres’ bill by demonstrating shared interests in market transparency and consumer protection.
The appointments of Maloney and McHenry give the CPM a rare combination of bipartisan political experience, regulatory insight, and congressional access at a moment when the industry faces legal uncertainty and calls for clearer federal oversight.
