Coinbase CLO: Former U.S. Solicitor General Files "Masterpiece" Amicus Brief in Kalshi Case

Odaily Planet Daily News: Coinbase Chief Legal Officer Paul Grewal stated that former U.S. Solicitor General Prelogar, representing the Coalition for Prediction Markets, has filed an amicus brief supporting Kalshi with the U.S. Court of Appeals for the Sixth Circuit, calling it a "masterpiece." Paul Grewal pointed out that the document not only reviews the historical background of the Commodity Futures Trading Commission’s exclusive regulatory authority over prediction markets but also presents three key points:

1. Prediction markets can uniquely aggregate market information and transform it into simple price signals, jointly aggregated by market participants.

2. Users of prediction markets trade at prices that market participants are willing to accept. They cannot control the contract price and bear the legal obligation to provide users with fair access to contracts.

3. The laws of various U.S. states are not suitable for regulating prediction markets because their core objectives are not to maintain fair markets, price discovery, information aggregation, risk hedging, or prevent market manipulation.