Coinspeaker
Dec 19, 2025
6 0

Coinbase Sues Three US States Over Prediction Market Products

Coinbase Legal Actions

  • Coinbase has filed lawsuits in Michigan, Illinois, and Connecticut against financial regulators.
  • The goal is to prevent states from regulating its planned prediction market products as gambling.
  • Coinbase argues prediction markets should be classified as commodities under the CFTC's jurisdiction.

Court Orders and Jurisdiction

  • Legal filings seek court orders to confirm federal oversight by the CFTC.
  • Some states classify prediction markets related to sports as outside CFTC jurisdiction.

Market Reaction and Future Plans

  • Coinbase's stock (COIN) fell 1.79%, trading at $239.83.
  • Plans to launch new products via Kalshi, a CFTC-regulated platform, in January 2026.

Kalshi and Coalition for Prediction Markets

  • Kalshi faces similar legal challenges; Connecticut issued cease-and-desist orders recently.
  • A coalition including Coinbase, Kalshi, and Robinhood seeks a unified federal regulatory framework.

Implications of Legal Outcomes

  • A win for Coinbase could create a CFTC-governed path for new derivatives and contracts.
  • A loss would increase compliance challenges and market fragmentation under state control.