Written by :
Published on :
The floodgates have opened as Coinbase becomes the latest to sue over prediction market access.
The cryptocurrency exchange has filed lawsuits against regulators in Connecticut, Illinois and Michigan, asking federal judges to affirm that prediction markets listed on a CFTC-regulated platform fall under the Commodity Exchange Act (CEA) as opposed to 50 individual state gambling codes.
In an X post on Dec. 19, Coinbase’s chief legal officer, Paul Grewal, said the exchange had 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).”
Coinbase has said its prediction market feature will roll out more broadly in the coming weeks or months following its December 17 announcement to enter the sector.
Connecticut’s Department of Consumer Protection (DCP) has issued cease-and-desist orders to major prediction market platforms in recent weeks.
The Illinois Gaming Board (IGB) has done so as well, specifically sending cease and desist letters to Kalshi, Robinhood, and Crypto.com.
The Michigan Gaming Control Board (MGCB) has been among the most aggressive, warning prediction markets, sweepstakes and offshore sportsbooks to stop offering their services to state residents. Their cease and desist letters began nearly two years ago.
In its briefs, Coinbase points to the language of the Commodity Exchange Act, which defines “commodity” broadly and lists only a few specific exclusions, such as onions and “motion-picture box-office receipts.”
By omitting sports or politics from the exclusions, Coinbase contends, Congress deliberately left such event contracts under federal purview.
Aaron Goldstein, Gambling911.com
