Coinbase Escalates Regulatory Fight With Lawsuit Against 3 States
Coinbase has filed lawsuits against Michigan, Illinois, and Connecticut in federal court, seeking to prevent state regulators from treating prediction markets as illegal gambling. The company argues that these markets are derivatives regulated by the CFTC under federal law, not by state gaming authorities. The legal action aims to avoid a patchwork of state rules that could block federally approved products.
The move follows state-level actions, including cease-and-desist orders against platforms like Kalshi. Coinbase plans to launch prediction market trading in partnership with Kalshi in January 2026, making a federal ruling urgent. The outcome could determine whether such markets are regulated nationally or on a state-by-state basis, impacting innovation and market access.
bitcoinist12/20 05:32