Coinbase sues Connecticut, other US states over prediction markets

Coinbase has filed a lawsuit against the U.S. states of Connecticut, Michigan, and Illinois over the regulation of prediction markets. Paul Grewal, the company's Chief Legal Officer, stated on X that some state governments have tried to control or block these markets by treating them as subject to gaming and gambling regulations. He argued that this approach not only violates the law but also stifles innovation. Grewal asserted that prediction markets fall exclusively under the jurisdiction of the U.S. Commodity Futures Trading Commission (CFTC), not state governments.