Coinbase flags 2026 tax limit in July 2025 bill, raising appeal of prediction markets

Coinbase, in a 2026 outlook released this week, said a provision of the One Big Beautiful Bill Act signed in July 2025 will limit deductions for gambling losses starting in 2026. The exchange argued prediction markets could be a more tax‑advantageous alternative, and it has partnered with Kalshi while suing Michigan, Illinois, and Connecticut over CFTC jurisdiction.