Coinbase Challenges State Regulation of Prediction Markets

Coinbase, a leading cryptocurrency exchange, is embroiled in legal battles with Connecticut, Illinois, and Michigan over prediction markets on its platform. Coinbase argues these markets should be regulated by the federal CFTC, not state gaming authorities. The company is adding prediction markets, starting with Kalshi, allowing users to speculate on future events. State regulators view these markets as gambling and are blocking their operation. Coinbases Chief Legal Officer, Paul Grewal, claims state-level actions stifle innovation and violate existing law. The company is filing lawsuits to prevent states from applying their gambling laws to federally regulated transactions. This legal dispute could significantly impact how new financial products are introduced and overseen across the US.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.