Coinbase calls state regulation of prediction markets excessive

Ryan VanGrack, Coinbase's head of global litigation, argued that moves by various U.S. states to regulate prediction markets are excessive, especially given the jurisdiction of the Commodity Futures Trading Commission (CFTC). According to Coinbase, VanGrack described it as a form of gaslighting for states to claim their intervention is necessary due to the CFTC's supposed lack of resources. He noted that the CFTC already oversees a derivatives market worth trillions of dollars and has the authority to regulate prediction markets. VanGrack also emphasized that individual prediction market contracts are fundamentally different from general sports betting, warning that having 50 different state-level regulations for a nationwide market would undermine both investor confidence and market stability. The comments follow Coinbase's announcement late last month that it would offer prediction markets with Kalshi, after which states including Connecticut, Illinois, Michigan, and Nevada began exploring regulatory measures.