Crypto.com's Internal Trading Raises Questions About "No House" Promise

Crypto.com is reportedly establishing an in-house market-making team aimed at profiting from trades on its own prediction market.

The move has sparked concerns over potential conflicts of interest for the CFTC-regulated platform and challenges the industry’s foundational claim of being a “no house” environment.

The company is actively recruiting a “quant trader” whose role, according to the job listing, is to “maximize profits while carefully managing risks” by trading on the firm’s sports-related contracts.

Prediction Markets vs. Traditional Sportsbooks
Prediction markets have traditionally set themselves apart from sportsbooks by providing neutral platforms where users trade directly with each other. Unlike sportsbooks, which profit when bettors lose, these markets have argued to regulators that they act purely as intermediaries.

By building an internal desk designed to capitalize on user activity, Crypto.com appears to be creating its own “house,” raising questions about whether this aligns with the principles of a CFTC-regulated derivatives market.

Concerns are heightened by reports of a Crypto.com rule allegedly giving market makers a three-second advantage over retail traders. This could allow internal traders to view incoming bets and adjust their own positions before smaller participants can act.

An Industry-Wide Trend
Crypto.com is not alone in this approach. Competitor Kalshi operates a similar internal unit, currently facing a class-action lawsuit claiming it disadvantages customers. Polymarket, after settling a case with the CFTC, is also reportedly hiring for its own trading team.

A Crypto.com spokesperson defended the practice, emphasizing that the internal market maker “does not have access to proprietary data or customer order flow” ahead of other participants. They further added that greater competition and liquidity better help the users by eventually improving the trading experience.

As prediction markets further their appeal for mainstream adoption in the U.S., sites such as Crypto.com are realizing they face another, deeper identity challenge-balancing profit against the core promise of fairness and neutrality.