Coinbase is facing growing criticism after heavily promoting March Madness-related prediction markets on its platform, raising questions about the blurred lines between crypto trading, sports betting, and regulated financial products.
The company, which launched prediction markets in December through a partnership with Kalshi, has been actively encouraging users to “trade the madness†during the NCAA tournament. The push has included frequent in-app prompts and notifications tied to specific college basketball games.
While Coinbase has leaned into the growing popularity of event-based trading, users on social media have pushed back, arguing that the platform is aggressively steering customers toward sports-related speculation. Critics say the volume and tone of notifications resemble traditional sports betting marketing rather than financial trading.
Coinbase has deliberately avoided using the term “March Madness,†a trademark owned by the NCAA, which has taken an increasingly hard stance against unauthorized commercial use of its branding. The organization has already initiated legal action against other companies, including a recent lawsuit against DraftKings over alleged trademark infringement.
The backlash comes at a time when prediction markets are rapidly expanding in visibility and legitimacy across the United States. Platforms like Coinbase and Kalshi position these products as financial instruments rather than gambling, arguing that users are trading on outcomes rather than betting against a sportsbook.
However, that distinction continues to face scrutiny from regulators, lawmakers, and sports governing bodies. The NCAA, in particular, has signaled it will actively defend its intellectual property and challenge companies it believes are exploiting its tournaments for commercial gain.
Coinbase CEO Brian Armstrong has acknowledged the criticism, suggesting that the company may adjust how it promotes these markets going forward. Any changes, however, will likely need to balance user engagement, regulatory pressure, and the company’s broader strategy in the fast-evolving prediction market space.
As prediction markets continue to intersect with sports, finance, and technology, Coinbase’s approach may serve as an early case study in how far these platforms can push into mainstream sports engagement before facing regulatory or legal limits.