Massachusetts Regulator Probes Robinhood Over Prediction Markets Hub: Reuters

BTC $ 87,949.36 + 3.24 % ETH $ 2,081.55 + 4.42 % USDT $ 1.0002 - 0.00 % XRP $ 2.4607 + 2.45 % BNB $ 636.98 + 2.08 % SOL $ 141.62 + 8.13 % USDC $ 1.0000 - 0.02 % DOGE $ 0.1852 + 8.34 % ADA $ 0.7359 + 4.64 % TRX $ 0.2287 - 0.62 % WBTC $ 87,808.37 + 3.18 % LINK $ 15.16 + 5.85 % TON $ 3.6738 + 0.60 % LEO $ 9.7561 + 0.10 % XLM $ 0.2895 + 3.25 % AVAX $ 21.28 + 9.49 % HBAR $ 0.1942 + 5.25 % SHIB $ 0.0₄1356 + 5.24 % SUI $ 2.4113 + 6.88 % LTC $ 94.73 + 4.16 % Ad Sign Up News Back to menu News Prices Back to menu Prices Data Back to menu Data Trade Data Derivatives Order Book Data On-Chain Data API Research & Insights Data Catalogue AI & Machine Learning Indices Back to menu Indices Multi-Asset Indices Reference Rates Strategies and Services API Insights & Announcements Documentation & Governance Research Back to menu Research Consensus Back to menu Consensus Sponsored Back to menu Sponsored Videos Back to menu Videos CoinDesk Daily Shorts Editor's Picks Podcasts Back to menu Podcasts CoinDesk Podcast Network Markets Daily Gen C Unchained with Laura Shin The Mining Pod Newsletters Back to menu Newsletters The Node Crypto Daybook Americas State of Crypto Crypto Long & Short Crypto for Advisors Research Back to menu Research Webinars & Events Back to menu Webinars & Events Consensus 2025 Policy & Regulation Conference Sponsored Back to menu Sponsored Thought Leadership Press Releases CoinW MEXC Phemex Advertise News Sections Back to menu News Sections Markets Finance Tech Policy Focus English Select Language English en Русский ru Français fr Italiano it Español es Filipino fil Português pt-br Українська uk News Prices Data Indices Research Consensus Sponsored Sign In Sign Up Policy Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Massachusetts Regulator Probes Robinhood Over Prediction Markets Hub: Reuters Robinhood launched its in-app prediction markets hub last week, allowing users to bet on the outcome of March Madness matchups. By Cheyenne Ligon | Edited by Nikhilesh De Mar 24, 2025, 9:04 p.m. UTC What to know : Robinhood is being probed by the top securities regulator in Massachusetts, according to a report from Reuters, over its event contract offerings. Robinhood launched its Kalshi-powered predictions market hub last week, offering users the opportunity to bet on the outcome of college basketball tournaments and the upper bound of the target fed funds rate in May. Massachusetts’ top securities regulator has reportedly launched a probe into Robinhood over the popular trading platform’s recent decision to launch an in-app prediction markets hub that allows customers to bet on the outcome of events, including March Madness match-ups. STORY CONTINUES BELOW Don't miss another story. Subscribe to the State of Crypto Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy . According to a Monday report from Reuters, Massachusetts Secretary of State Bill Galvin — a notoriously aggressive regulator — sent Robinhood a subpoena last week seeking information about the number of Robinhood’s users in Massachusetts that have requested to trade college sports events contracts, and seeking copies of Robinhood’s related marketing materials. "This is just another gimmick from a company that's very good at gimmicks to lure investors away from sound investing," Galvin told Reuters. Galvin's office confirmed the investigation to CoinDesk, and added that Robinhood's response to the subpoena is due on April 3. Robinhood’s prediction market, which is powered by the Commodity Futures Trading Commission (CFTC)-regulated Kalshi, launched on March 17 with March Madness-related event contracts, as well as another linked to the upper bound of the target fed funds rate in May . At the time of the launch, Robinhood told CoinDesk that it had been in communication with the CFTC “in recent weeks” leading up to the launch. A spokesperson for Robinhood reiterated that the event contracts offered through its prediction markets hub were “regulated by the CFTC and offered through CFTC-registered entities.” “Prediction markets have become increasingly relevant for retail and institutional investors alike, and we're proud to be one of the first platforms to offer these products to retail customers in a safe and regulated manner,” the spokesperson added. The trading platform previously attempted to launch its prediction markets hub in February, ahead of the Super Bowl, but delayed the launch at the request of the CFTC. Robinhood Massachusetts Investigations Cheyenne Ligon On the news team at CoinDesk, Cheyenne focuses on crypto regulation and crime. Cheyenne is originally from Houston, Texas. She studied political science at Tulane University in Louisiana. In December 2021, she graduated from CUNY's Craig Newmark Graduate School of Journalism, where she focused on business and economics reporting. She has no significant crypto holdings. X icon About About Us Masthead Careers CoinDesk News Crypto API Documentation Contact Contact Us Accessibility Advertise Sitemap System Status DISCLOSURE & POLICES CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies . CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one. Ethics Privacy Terms of Use Cookie Consent Do Not Sell My Info © 2025 CoinDesk, Inc. X icon