Former U.S. lawmakers Maloney, McHenry join prediction markets lobbying group

The Coalition for Prediction Markets (CPM), a lobbying group representing the growing prediction markets industry, said on Tuesday it has appointed two former U.S. lawmakers to senior leadership roles, signalling a bipartisan push as the sector faces rising regulatory scrutiny.

Former Democratic U.S. Representative Sean Patrick Maloney has been named Chief Executive Officer and President of the coalition, while former Republican Congressman Patrick McHenry, who previously chaired the House Financial Services Committee, will join as a Senior Advisor.

The appointments come at a time when prediction markets are drawing increased attention from state regulators seeking to assert jurisdiction over these platforms. Industry participants argue that fragmented regulation could undermine transparency and consumer protections, and that these markets have historically operated under federal oversight.

Prediction markets allow users to trade contracts tied to real-world outcomes, including economic indicators and political events, and are regulated at the federal level by the Commodity Futures Trading Commission (CFTC).

Maloney, who represented New York in Congress for a decade, previously chaired the Commodity Markets and Digital Assets Subcommittee overseeing the CFTC, and brings experience in financial regulation, digital assets, and market structure. He said clear and consistent rules are critical to the sector’s growth.

“Prediction markets are proving to be one of the most effective tools we have for aggregating information and forecasting real-world outcomes,” Maloney said in a statement. “But that promise depends on clear rules, thoughtful oversight, and regulatory certainty. CPM exists to make sure policymakers get this right, and I'm excited to help lead that effort."
 
McHenry served in Congress for 20 years and held several senior leadership roles, including chairman of the Financial Services Committee and its Oversight and Investigations Subcommittee. As senior advisor, he will provide guidance on financial regulation, market structure, and engagement with federal policymakers. He is also a senior advisor to investment bank Lazard.

“Prediction markets have long operated within a federal regulatory framework designed to promote transparency and protect consumers,” McHenry said. “As these markets continue to grow, it's critical that both consumers and platforms have clear and consistent guidance.”

“Over the past decade, I've been proud to lead the country's approach to regulating innovative financial tools, and I look forward to supporting CPM as it paves the way ahead," he said.

CPM was formed last month by Crypto.com and Kalshi. Its members also include Coinbase Global, Robinhood Markets, and sports gaming firm Underdog.

The sector is facing lobbying pressure from the American Gaming Association (AGA) and the Indian Gaming Association (IGA), which have urged Congress to increase oversight of sports-related event contracts, arguing they threaten existing state and tribal gaming laws.

CPM said the appointments mark a new phase focused on engaging policymakers and ensuring prediction markets continue to operate under a consistent federal regulatory framework.