Major trading platforms, including Cboe, Crypto.com, and Hyperliquid, are aggressively expanding into prediction markets, driven by growing demand for event-based trading. Cboe is exploring a regulated yes-or-no product within a traditional options framework, while Crypto.com launched a standalone app for its prediction markets unit, citing a fortyfold increase in trading activity over six months. Decentralized platforms like Jupiter and Hyperliquid are also enhancing their offerings, with Hyperliquid's HYPE token rising 15% despite a broader market downturn. However, this expansion comes as legal scrutiny intensifies. Nevada has issued a temporary restraining order against Polymarket, citing concerns over unlicensed sports betting, while Coinbase has temporarily avoided similar restrictions. In response to regulatory pressure, platforms are tightening oversight, with Kalshi expanding monitoring efforts and hiring external experts to prevent insider trading. U.S. lawmakers are also proposing legislation to address insider trading in prediction markets, highlighting the growing regulatory focus on this sector.