Robinhood, the company known for its stock and cryptocurrency trading app, is reportedly holding discussions with crypto exchange Crypto.com to expand its offerings in the prediction markets sector. This potential expansion comes as companies operating prediction markets in the United States continue to navigate legal disputes between state and federal regulators.

A Wall Street Journal report published on a Friday, citing people familiar with the situation, indicated that Robinhood was in talks with Crypto.com. The purpose of these discussions is to arrange for the placement of yes-or-no event contracts that would be supplied by the exchange.

In March 2025, the trading company launched its own prediction markets hub. To meet the regulatory standards of the U.S. Commodity Futures Trading Commission (CFTC), Robinhood initially worked with Kalshi before later utilizing ForecastEx and Rotella.

The news of these reported discussions surfaced only days after analysts at Bernstein raised the firm’s price target for Robinhood (HOOD) stock. The target was increased to $160 per share from the previous $130, a revision based on the company's prospects in prediction markets and tokenized equities. The analysts projected that Robinhood's revenue generated from prediction markets could potentially reach $1.7 billion by the year 2028.

While Bernstein has expressed optimism about the sector, stating in April that prediction market volumes could grow to $1 trillion by 2030, many platforms are contending with ongoing legal challenges in the U.S. These challenges stem from conflicts between state and federal authorities over jurisdiction.

The CFTC has asserted that it holds "exclusive jurisdiction" over the event contracts offered by these companies. Simultaneously, gaming authorities in numerous states have filed lawsuits in an effort to either block or restrict their operations.