Coinbase borrows Kalshi’s playbook, sues three states over prediction markets
Coinbase sued regulators in Connecticut, Illinois and Michigan, arguing CFTC-regulated prediction markets fall under federal commodities law, not state gambling rules.
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 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).”
Read more
