Coinbase Joins Kalshi in Battle Against State Gambling Regulators

Coinbase has joined prediction market platform Kalshi in a legal fight against U.S. state gambling regulators regarding the classification of event contracts. State authorities argue these contracts are gambling products subject to state law, while Kalshi and now Coinbase contend they are financial instruments under the jurisdiction of the Commodity Futures Trading Commission (CFTC).

Coinbase is suing Michigan, Illinois, and Connecticut after these states, along with several others, issued cease-and-desist orders or threatened legal action against Kalshi. Coinbase anticipates similar action against itself as it prepares to list Kalshi's event contracts on its platform. This legal action supports Kalshi's ongoing efforts to block state crackdowns, seeking a definitive federal ruling to settle whether event contracts constitute gambling or regulated financial products.

(Source：CCN)