The post Coinbase Sues Illinois, Michigan, and Connecticut Over Prediction Market Crackdown appeared on BitcoinEthereumNews.com. Home » Crypto News Coinbase’s The post Coinbase Sues Illinois, Michigan, and Connecticut Over Prediction Market Crackdown appeared on BitcoinEthereumNews.com. Home » Crypto News Coinbase’s

Coinbase Sues Illinois, Michigan, and Connecticut Over Prediction Market Crackdown

Home » Crypto News


Coinbase’s announcement of a new partnership with Kalshi to enter prediction markets was made just a day before the lawsuits were filed.

‘;
}

function loadTrinityPlayer(targetWrapper, theme,extras=””) {
cleanupPlayer(targetWrapper); // Always clean first ✅
targetWrapper.classList.add(‘played’);
// Create script
const scriptEl = document.createElement(“script”);
scriptEl.setAttribute(“fetchpriority”, “high”);
scriptEl.setAttribute(“charset”, “UTF-8”);

const scriptURL = new URL(`https://trinitymedia.ai/player/trinity/2900019254/?themeAppearance=${theme}${extras}`);
scriptURL.searchParams.set(“pageURL”, window.location.href);

scriptEl.src = scriptURL.toString();

// Insert player
const placeholder = targetWrapper.querySelector(“.add-before-this”);
placeholder.parentNode.insertBefore(scriptEl, placeholder.nextSibling);
}

function getTheme() {
return document.body.classList.contains(“dark”) ? “dark” : “light”;
}

// Initial Load for Desktop
if (window.innerWidth > 768) {

const desktopBtn = document.getElementById(“desktopPlayBtn”);
if (desktopBtn) {
desktopBtn.addEventListener(“click”, function () {
const desktopWrapper = document.querySelector(“.desktop-player-wrapper.trinity-player-iframe-wrapper”);
if (desktopWrapper) loadTrinityPlayer(desktopWrapper, getTheme(),’&autoplay=1′);
});
}
}

// Mobile Button Click
const mobileBtn = document.getElementById(“mobilePlayBtn”);
if (mobileBtn) {
mobileBtn.addEventListener(“click”, function () {
const mobileWrapper = document.querySelector(“.mobile-player-wrapper.trinity-player-iframe-wrapper”);
if (mobileWrapper) loadTrinityPlayer(mobileWrapper, getTheme(),’&autoplay=1′);
});
}
function reInitButton(container,html){
container.innerHTML = ” + html;
}

// Theme switcher
const destroyButton = document.getElementById(“checkbox”);
if (destroyButton) {
destroyButton.addEventListener(“click”, () => {
setTimeout(() => {
const theme = getTheme();
if (window.innerWidth > 768) {
const desktopWrapper = document.querySelector(“.desktop-player-wrapper.trinity-player-iframe-wrapper”);
if(desktopWrapper.classList.contains(‘played’)){
loadTrinityPlayer(desktopWrapper, theme,’&autoplay=1′);
}else{
reInitButton(desktopWrapper,’Listen‘)
const desktopBtn = document.getElementById(“desktopPlayBtn”);
if (desktopBtn) {
desktopBtn.addEventListener(“click”, function () {
const desktopWrapper = document.querySelector(“.desktop-player-wrapper.trinity-player-iframe-wrapper”);
if (desktopWrapper) loadTrinityPlayer(desktopWrapper,theme,’&autoplay=1’);
});
}
}
} else {
const mobileWrapper = document.querySelector(“.mobile-player-wrapper.trinity-player-iframe-wrapper”);
if(mobileWrapper.classList.contains(‘played’)){
loadTrinityPlayer(mobileWrapper, theme,’&autoplay=1′);
}else{
const mobileBtn = document.getElementById(“mobilePlayBtn”);
if (mobileBtn) {
mobileBtn.addEventListener(“click”, function () {
const mobileWrapper = document.querySelector(“.mobile-player-wrapper.trinity-player-iframe-wrapper”);
if (mobileWrapper) loadTrinityPlayer(mobileWrapper,theme,’&autoplay=1′);
});
}
}
}
}, 100);
});
}
})();



Summarize with AI



Summarize with AI

Coinbase has filed lawsuits against Illinois, Michigan, and Connecticut, while challenging state efforts to regulate prediction markets and asking federal courts to clarify who has oversight authority.

In its filings, the crypto exchange is seeking declaratory and injunctive relief, arguing that prediction markets fall under the exclusive jurisdiction of the Commodity Futures Trading Commission (CFTC) rather than state gaming regulators.

Who Controls Prediction Markets?

The company stated that federal law already assigns regulatory authority for these products to the CFTC, which leaves states without the power to restrict or prohibit them under gambling statutes. The lawsuits come as Coinbase prepares to enter the prediction markets space through a partnership with Kalshi, a CFTC-regulated platform, and plans to roll out event-based contract trading across the US starting in January 2026.

Coinbase warned in court filings that state intervention could cause immediate and “irreparable harm” by blocking access to federally regulated products in certain jurisdictions. The company is responding to actions by several states that have sought to classify event contracts, particularly those linked to sports outcomes, as illegal gambling unless operators obtain state-issued betting licenses.

According to the crypto exchange, this interpretation conflicts with federal commodities law. The exchange said that Congress granted the CFTC broad authority over derivatives and commodities, with only a limited set of exclusions that do not include sporting events. As such, Coinbase added that sports-related event contracts remain subject to federal oversight.

The company has also highlighted the differences between prediction markets and traditional sportsbooks. Unlike casinos, which set odds and profit from customer losses, prediction markets function as neutral venues that match buyers and sellers without taking directional risk.

Coinbase’s Chief Legal Officer, Paul Grewal, tweeted

You may also like:

The lawsuits arrive amid growing scrutiny from state regulators as prediction markets have surged in popularity. Platforms such as Kalshi and Polymarket have generated billions of dollars in trading volume over the past year and have drawn increased regulatory attention as a result.

Earlier this month, Connecticut regulators issued cease-and-desist orders against several companies offering event-based contracts, triggering legal challenges and temporary pauses on enforcement.

Prediction Markets Boom

Regulatory woes aside, the sector has also seen fresh momentum in 2025 from new product launches, reinforcing expectations of broader adoption. Robinhood CEO Vlad Tenev recently predicted significant long-term growth for crypto-based prediction markets. The exec even described the sector as entering the early stages of a “prediction market supercycle.”

Tenev said adoption and trading volumes could expand dramatically as platforms increasingly price real-world events using blockchain infrastructure.

SPECIAL OFFER (Exclusive)

SECRET PARTNERSHIP BONUS for CryptoPotato readers: Use this link to register and unlock $1,500 in exclusive BingX Exchange rewards (limited time offer).

Source: https://cryptopotato.com/coinbase-sues-illinois-michigan-and-connecticut-over-prediction-market-crackdown/

Market Opportunity
hadtotakeprofits sir Logo
hadtotakeprofits sir Price(HTTPS)
$0,000731
$0,000731$0,000731
+38,97%
USD
hadtotakeprofits sir (HTTPS) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Shocking OpenVPP Partnership Claim Draws Urgent Scrutiny

Shocking OpenVPP Partnership Claim Draws Urgent Scrutiny

The post Shocking OpenVPP Partnership Claim Draws Urgent Scrutiny appeared on BitcoinEthereumNews.com. The cryptocurrency world is buzzing with a recent controversy surrounding a bold OpenVPP partnership claim. This week, OpenVPP (OVPP) announced what it presented as a significant collaboration with the U.S. government in the innovative field of energy tokenization. However, this claim quickly drew the sharp eye of on-chain analyst ZachXBT, who highlighted a swift and official rebuttal that has sent ripples through the digital asset community. What Sparked the OpenVPP Partnership Claim Controversy? The core of the issue revolves around OpenVPP’s assertion of a U.S. government partnership. This kind of collaboration would typically be a monumental endorsement for any private cryptocurrency project, especially given the current regulatory climate. Such a partnership could signify a new era of mainstream adoption and legitimacy for energy tokenization initiatives. OpenVPP initially claimed cooperation with the U.S. government. This alleged partnership was said to be in the domain of energy tokenization. The announcement generated considerable interest and discussion online. ZachXBT, known for his diligent on-chain investigations, was quick to flag the development. He brought attention to the fact that U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce had directly addressed the OpenVPP partnership claim. Her response, delivered within hours, was unequivocal and starkly contradicted OpenVPP’s narrative. How Did Regulatory Authorities Respond to the OpenVPP Partnership Claim? Commissioner Hester Peirce’s statement was a crucial turning point in this unfolding story. She clearly stated that the SEC, as an agency, does not engage in partnerships with private cryptocurrency projects. This response effectively dismantled the credibility of OpenVPP’s initial announcement regarding their supposed government collaboration. Peirce’s swift clarification underscores a fundamental principle of regulatory bodies: maintaining impartiality and avoiding endorsements of private entities. Her statement serves as a vital reminder to the crypto community about the official stance of government agencies concerning private ventures. Moreover, ZachXBT’s analysis…
Share
BitcoinEthereumNews2025/09/18 02:13
OpenVPP accused of falsely advertising cooperation with the US government; SEC commissioner clarifies no involvement

OpenVPP accused of falsely advertising cooperation with the US government; SEC commissioner clarifies no involvement

PANews reported on September 17th that on-chain sleuth ZachXBT tweeted that OpenVPP ( $OVPP ) announced this week that it was collaborating with the US government to advance energy tokenization. SEC Commissioner Hester Peirce subsequently responded, stating that the company does not collaborate with or endorse any private crypto projects. The OpenVPP team subsequently hid the response. Several crypto influencers have participated in promoting the project, and the accounts involved have been questioned as typical influencer accounts.
Share
PANews2025/09/17 23:58
Vitalik Buterin’s Minor Token Sales Underscore Ethereum’s Portfolio Dominance

Vitalik Buterin’s Minor Token Sales Underscore Ethereum’s Portfolio Dominance

The post Vitalik Buterin’s Minor Token Sales Underscore Ethereum’s Portfolio Dominance appeared on BitcoinEthereumNews.com. Vitalik Buterin recently sold small
Share
BitcoinEthereumNews2025/12/21 05:14