Overview
- Coinbase filed federal complaints seeking declaratory and injunctive relief that event-based contracts fall under the Commodity Exchange Act and the CFTC’s exclusive jurisdiction.
- The company told courts that state intervention would cause “immediate and irreparable” harm and argued prediction markets are neutral matching engines rather than sportsbooks.
- Regulators in states including Connecticut and Illinois have issued cease-and-desist letters to platforms such as Kalshi, Robinhood and Crypto.com, with Michigan warning operators as well.
- Related cases involving Kalshi have produced mixed outcomes, with some judges treating the products as subject to state gaming oversight and others granting temporary federal protection.
- Legal analysts say the disputes could set nationwide precedent on federal versus state control, with appeals expected and possible Supreme Court review in 2026.