U.S. Court Rejects Nevada Regulator's Request to Suspend Coinbase's Prediction Market Operations

Odaily News A district court in Nevada, USA, has rejected a request from state regulators for an emergency injunction to halt Coinbase's operation of prediction markets. The Nevada Gaming Control Board had previously filed a lawsuit alleging that Coinbase was offering unlicensed sports event contract betting products in the state and sought a temporary restraining order. The court did not grant the emergency injunction, instead deciding to hold a hearing next week to allow Coinbase to respond.

Paul Grewal, Coinbase's Chief Legal Officer, stated that the company has concurrently filed a lawsuit in the state's federal court, arguing that the U.S. Commodity Exchange Act grants the Commodity Futures Trading Commission (CFTC) "exclusive jurisdiction" over swaps and event contracts listed on regulated exchanges. He contends that the state regulators' attempt to classify these instruments as state-level gambling conflicts with the federal derivatives regulatory framework. (Cointelegraph)