Coinbase (COIN) sues Connecticut, Illinois and Michigan over prediction markets regulation
Coinbase is suing Connecticut, Illinois, and Michigan to assert that federal law, not state regulators, governs prediction markets.Summary
Coinbase is taking legal action against Connecticut, Illinois, and Michigan over their attempts to regulate prediction markets, which the crypto exchange plans to integrate into its platform, initially via Kalshi. Chief Legal Officer Paul Grewal stated that the lawsuits aim to confirm that these markets fall under the jurisdiction of the U.S. Commodity Futures Trading Commission (CFTC), not individual state gaming regulators. Coinbase argues that state efforts to block these markets stifle innovation and violate the law, emphasizing that prediction markets are neutral exchanges, unlike casinos. The company contends that these markets are derivatives whose underlying assets fall under the CFTC's purview because Congress explicitly excluded certain items from the definition of a commodity.
(Source：CoinDesk)