Eric Adams Pushes Crypto Plan as High Taxes Drive Billionaires Out of New York

New York lawmakers continue to scrutinize crypto-based prediction markets as regulatory and political tensions rise. A new bill, reintroduced by Assemblyman Clyde Vanel, seeks to ban sports betting on these platforms and impose stricter rules for user behavior and financial accountability according to reports. The initiative follows a recent partnership between Polymarket and the NHL’s New York Rangers, which has drawn additional attention to the growing influence of crypto prediction platforms as reported.

Regulatory uncertainty remains a key concern for prediction market operators. Kalshi, a major platform, has been sued by the New York State Gaming Commission for offering services without a license. In response, Kalshi argues it is a trading platform, not a gambling site, and should be under federal jurisdiction according to CBS News. This legal ambiguity has led to calls for a more comprehensive federal regulatory framework as analysts note.

Sports betting dominates trading activity on prediction market platforms. Dune analytics data shows that sports-related trading accounts for 37% of Polymarket's notional volume and as high as 93% on Kalshi. The new legislation aims to curb this by enforcing age restrictions and limiting credit card use for bets according to Cryptopolitan.

Why Did This Happen?

The New York Assembly's focus on prediction markets has intensified as lawmakers seek to address concerns around gambling, insider trading, and regulatory oversight. Vanel's ORACLE Act, reintroduced in early 2026, includes provisions such as user time limits and the prohibition of credit card payments for bets. These measures aim to protect consumers and ensure platforms operate within legal boundaries according to reports.

Political betting has also raised alarms. Some lawmakers fear the potential for insider trading and manipulation of political outcomes through prediction markets. Vanel expressed concerns about the impact on democratic processes, noting that similar issues in sports betting could extend to politics as CBS News reports.

How Did Markets Respond?

Crypto prediction markets continue to grow despite regulatory scrutiny. Kalshi and Polymarket have attracted traders who view them as more sophisticated than traditional sports betting. Kalshi's CEO has supported federal legislation to ban insider trading on such platforms, while critics argue the existing rules are sufficient according to analysis.

Market reactions have been mixed. Polymarket's recent deal with the Rangers has expanded its visibility in New York, but the company also faces a potential $1 million daily fine if it operates without a license as reported. Traders and investors remain cautious as regulatory clarity remains elusive.

What Are Analysts Watching Next?

Experts warn of the potential for fraudulent behavior and the need for stronger enforcement of existing regulations. KPMG's D.J. Hennes noted that insider trading on prediction markets is already illegal and that enforcement is key according to CBS News. Analysts are closely watching whether the New York Gaming Commission will expand its cease-and-desist actions to other platforms as reported.

The debate over prediction markets highlights broader challenges in regulating crypto-based financial instruments. While some view these platforms as a tool for informed forecasting, others see them as a risk to market integrity and consumer protection. The outcome of these legal and regulatory battles will shape the future of prediction markets in the U.S.

New York's regulatory approach to crypto prediction markets is part of a larger trend as lawmakers across the U.S. grapple with the implications of decentralized financial systems. The state's actions could influence federal policy and set a precedent for how prediction markets are classified and governed in the future according to CBS News.