"Trump's Ban Offers Opportunities to Gamblers with Prediction Markets"

Coinbase stated that there will be significant changes regarding how gamblers can deduct their losses from their winnings under the One Big Beautiful Bill Act, which will come into effect in 2026. This new tax rule will limit the ability to deduct losses from winnings.

However, Coinbase suggested that prediction markets might offer a more favorable tax treatment due to their structure resembling financial contracts. The similarity of prediction markets to derivatives is another factor that makes them attractive to gamblers.

In a broader context, Coinbase predicts that prediction markets will become an important part of the crypto infrastructure despite the current fragmentation and regulatory uncertainties.