News Summary

Coinbase Global Inc. has filed lawsuits against the US states of Michigan, Illinois, and Connecticut, challenging their attempts to regulate prediction markets. The cryptocurrency exchange argues that these markets should fall under the federal oversight of the Commodity Futures Trading Commission (CFTC) rather than state gaming regulators. This legal action follows Coinbase’s announcement of plans to offer prediction markets in its app, alongside stock trading and a tokenization platform for institutions. The lawsuits seek declaratory and injunctive relief, asserting that prediction markets are financial instruments under the CFTC’s jurisdiction. With prediction market activities surging, particularly in sports betting, the debate over state versus federal regulation intensifies.