Coinbase Report: Trump's "Big Beautiful Bill" Could Create Tax Loophole for Crypto Gamblers via Prediction Markets

A new analysis from cryptocurrency exchange Coinbase suggests that proposed legislation, informally referred to as Trump's "Big Beautiful Bill," could create a significant tax advantage for users of crypto-based prediction markets. The report indicates that these markets, which allow users to bet on event outcomes, might be classified differently from traditional gambling under the new regulatory framework. This potential reclassification could allow winnings to be treated as capital gains rather than ordinary income, offering a substantial tax loophole. The bill aims to provide clearer regulations for the digital asset space, but this specific interpretation highlights unintended consequences that could benefit speculative trading in prediction platforms. Experts note this could drive increased activity in decentralized prediction markets, though regulatory clarity remains pending final bill language.