Request Denied: Coinbase Fails to Block Michigan's Enforcement of Sports Event Contract Regulations

Odaily News A U.S. District Court Judge for the Eastern District of Michigan, Shalina Kumar, on Thursday denied Coinbase's preliminary injunction request to block the state government from enforcing regulations on sports event contracts. The ruling stated that Coinbase failed to demonstrate that its claim of federal law preempting Michigan's jurisdiction was likely to succeed on the merits of the case. Coinbase sued Michigan in December 2025, arguing that prediction markets fall under the exclusive jurisdiction of the U.S. Commodity Futures Trading Commission (CFTC) under the federal Commodity Exchange Act (CEA), rather than state-level regulators. Coinbase sought to provide its platform customers, including those in Michigan, with access to event contracts issued by Kalshi, and stated in its complaint that Michigan law constitutes "conflict preemption" because it obstructs Congress's establishment of a unified federal regulatory framework.