Coinbase: The Big and Beautiful Act may accelerate the adoption of prediction markets

Coinbase stated that the Bigger & Beautiful Act signed by Trump would restrict the deduction of profits from losses, potentially subjecting some taxpayers to taxes even if they incur overall losses. The company believes that prediction markets, due to their contractual nature, could be 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.