Coinbase Files Federal Lawsuits to Challenge State Bans on Prediction Markets

Coinotag

Release Time:12/19/2025 14:31:46

Coinbase has filed federal lawsuits in Connecticut, Michigan, and Illinois to challenge state bans on prediction markets. The lawsuits argue that the CFTC—not state gaming regulators—has jurisdiction over these markets. The move supports Coinbase’s plan to launch prediction markets in early 2026 via its partnership with Kalshi, a CFTC-registered exchange. State regulators have issued cease-and-desist letters to platforms like Kalshi and Robinhood, calling their event contracts unlicensed gambling. Coinbase seeks to block state interference and confirm CFTC oversight, ensuring nationwide access to event contract trading. The case could impact liquidity and crypto markets, especially as global frameworks like EU Markets in Crypto-Assets Regulation evolve.

Source:Show original

Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information. Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.