Coinbase Sues Prediction Markets in Three States

Coinbase Engages in Legal Battle with States

Coinbase has filed a lawsuit against the states of Connecticut, Illinois, and Michigan due to attempts to regulate prediction markets. The cryptocurrency exchange stated that this step was taken "to confirm what is clear," as expressed by Paul Grewal, the company’s General Counsel, in a post on the X platform. Grewal emphasized that prediction markets fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC).

Prediction Markets and State Regulations

Prediction markets allow users to speculate on the outcomes of future events, involving the purchase of shares in contracts based on potential results. However, some state gambling regulators are taking action to block such activities, arguing that these services could be considered a form of gambling.