The post Coinbase Sues 3 States Over Prediction Market Laws appeared on BitcoinEthereumNews.com. Coinbase is taking three US states to court in a bid to lock inThe post Coinbase Sues 3 States Over Prediction Market Laws appeared on BitcoinEthereumNews.com. Coinbase is taking three US states to court in a bid to lock in

Coinbase Sues 3 States Over Prediction Market Laws

Coinbase is taking three US states to court in a bid to lock in federal protection for its planned prediction markets, opening a new front in the battle over whether event contracts are finance or gambling.

The exchange has sued regulators in Connecticut, Illinois, and Michigan, asking federal judges to declare that prediction markets listed on a US Commodity Futures Trading Commission (CFTC)-regulated platform fall under the Commodity Exchange Act (CEA) and the CFTC’s claimed exclusive jurisdiction, not 50 separate state gambling codes.

In a Friday X post, chief legal officer Paul Grewal said Coinbase filed the cases “to confirm what is clear: prediction markets fall squarely under the jurisdiction of the @CFTC, not any individual state gaming regulator (let alone 50).”

Source: Paul Grewal

Related: Coinbase appoints former UK minister George Osborne to chair advisory council

Coinbase’s federalism challenge to state gambling laws

Coinbase frames the dispute as both a legal and structural question. Court filings argue that if each state can independently decide whether federally supervised prediction markets are illegal gambling, the most restrictive regime would effectively become the national standard, “turning our system of federalism upside down.”

The company also leans hard on the way Congress defined “commodity” in the CEA, noting that lawmakers chose to carve out only a handful of specific underliers, notably onions and “motion‑picture box‑office receipts,” rather than sports or politics.

Coinbase filing against Michigan. Source: Court Listener

Grewal draws a clear line between Coinbase’s planned markets and traditional sportsbooks. Casinos and bookmakers, he argues, profit from customer losses and set odds to maximize their winnings. Prediction markets, he says, are neutral matching engines that pair buyers and sellers and are indifferent to price.

Treating both as the same thing, Coinbase says, would not only misread the statute but also smother a federally regulated product that is supposed to live inside the derivatives framework, with CFTC surveillance and position limits.

Related: Coinbase adds stock trading, prediction markets in ‘everything app’ push

Kalshi’s mixed record shows what’s at stake for prediction markets

Kalshi, which already operates as a CFTC‑designated contract market for event contracts, has been testing that theory in court for almost a year. It has sued or been sued in at least six states over whether its sports and event markets are CFTC‑regulated derivatives or unlicensed gambling.

Outcomes so far are mixed. In Nevada and Maryland, judges have held that Kalshi is subject to state gaming oversight despite its CFTC status, while in New Jersey and, more recently, Connecticut, federal courts have granted the company temporary protection from enforcement while they weigh broader injunctions. Massachusetts, meanwhile, has sued to block Kalshi’s sports products, with an injunction decision not expected until early 2026.

With Coinbase now effectively adopting Kalshi’s pre‑emption playbook, the combined docket could force federal courts to answer the core question both firms have been circling. Are US prediction markets going to be treated as regulated financial instruments under the CEA, or as gambling products that live or die under state law?

Source: https://cointelegraph.com/news/coinbase-sues-states-prediction-markets?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound

Market Opportunity
Talus Logo
Talus Price(US)
$0.01136
$0.01136$0.01136
-3.64%
USD
Talus (US) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Will XRP Price Increase In September 2025?

Will XRP Price Increase In September 2025?

Ripple XRP is a cryptocurrency that primarily focuses on building a decentralised payments network to facilitate low-cost and cross-border transactions. It’s a native digital currency of the Ripple network, which works as a blockchain called the XRP Ledger (XRPL). It utilised a shared, distributed ledger to track account balances and transactions. What Do XRP Charts Reveal? […]
Share
Tronweekly2025/09/18 00:00
Korean lawmaker calls for institutionalization of stablecoins

Korean lawmaker calls for institutionalization of stablecoins

The post Korean lawmaker calls for institutionalization of stablecoins appeared on BitcoinEthereumNews.com. A South Korean lawmaker has urged the country to swiftly
Share
BitcoinEthereumNews2025/12/20 16:24
Best Crypto to Buy as Saylor & Crypto Execs Meet in US Treasury Council

Best Crypto to Buy as Saylor & Crypto Execs Meet in US Treasury Council

The post Best Crypto to Buy as Saylor & Crypto Execs Meet in US Treasury Council appeared on BitcoinEthereumNews.com. Michael Saylor and a group of crypto executives met in Washington, D.C. yesterday to push for the Strategic Bitcoin Reserve Bill (the BITCOIN Act), which would see the U.S. acquire up to 1M $BTC over five years. With Bitcoin being positioned yet again as a cornerstone of national monetary policy, many investors are turning their eyes to projects that lean into this narrative – altcoins, meme coins, and presales that could ride on the same wave. Read on for three of the best crypto projects that seem especially well‐suited to benefit from this macro shift:  Bitcoin Hyper, Best Wallet Token, and Remittix. These projects stand out for having a strong use case and high adoption potential, especially given the push for a U.S. Bitcoin reserve.   Why the Bitcoin Reserve Bill Matters for Crypto Markets The strategic Bitcoin Reserve Bill could mark a turning point for the U.S. approach to digital assets. The proposal would see America build a long-term Bitcoin reserve by acquiring up to one million $BTC over five years. To make this happen, lawmakers are exploring creative funding methods such as revaluing old gold certificates. The plan also leans on confiscated Bitcoin already held by the government, worth an estimated $15–20B. This isn’t just a headline for policy wonks. It signals that Bitcoin is moving from the margins into the core of financial strategy. Industry figures like Michael Saylor, Senator Cynthia Lummis, and Marathon Digital’s Fred Thiel are all backing the bill. They see Bitcoin not just as an investment, but as a hedge against systemic risks. For the wider crypto market, this opens the door for projects tied to Bitcoin and the infrastructure that supports it. 1. Bitcoin Hyper ($HYPER) – Turning Bitcoin Into More Than Just Digital Gold The U.S. may soon treat Bitcoin as…
Share
BitcoinEthereumNews2025/09/18 00:27