News linked to both this project and an event.
According to The Wall Street Journal, on April 27, the U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit against New York State in the U.S. District Court for the Southern District of New York, seeking a court ruling that the CFTC holds exclusive regulatory authority over prediction markets—aiming to halt New York State’s enforcement actions. Previously, New York State had filed lawsuits against cryptocurrency exchanges Coinbase and Gemini over their prediction market operations. Earlier this month, the CFTC also initiated similar lawsuits against Arizona, Illinois, and Connecticut, intensifying jurisdictional disputes between federal and state regulatory agencies.
the CFTC has filed a lawsuit in the U.S. District Court for the Southern District of New York, aiming to prevent New York state from enforcing its gambling laws on federally regulated prediction market platforms. The CFTC argues that federal law grants it exclusive regulatory authority over such markets and is seeking a permanent injunction against New York's enforcement actions. CFTC Chairman Michael Selig stated that registered exchanges face multiple state-level lawsuits, which undermine the CFTC's sole regulatory authority over prediction markets. Previously, New York state had sued Binance and Gemini, alleging their products violated state gambling rules, and had also requested Kalshi to cease certain sports-related contracts. Currently, 37 states and Washington D.C. have submitted amicus briefs supporting Massachusetts' enforcement against Kalshi, arguing that federal law has not legalized sports betting and has not abolished the states' historical regulatory powers.
According to Cointelegraph, Coinbase Chief Legal Officer Paul Grewal stated that the company has removed the lawsuit filed against it by New York Attorney General Letitia James—regarding its prediction markets business—from state court to federal court, citing a substantial federal legal question concerning the regulation of event contracts. The lawsuit also involves Gemini Titan. New York alleges that the relevant prediction market products violate the state’s gambling laws and seeks penalties, disgorgement of alleged illegal profits, user compensation, and an injunction prohibiting the offering of similar products in New York without compliance with state law.
According to The Block, New York State Attorney General Letitia James filed a lawsuit against Coinbase and Gemini on Tuesday, accusing both companies of violating New York’s gambling laws through their prediction market platforms and permitting users aged 18 to 21 to participate—despite New York law requiring participants in mobile sports betting to be at least 21 years old. The state is seeking at least $2.2 billion in damages from Coinbase and at least $1.2 billion from Gemini, along with civil penalties, refunds to users, and forfeiture of illicit proceeds. In response, Coinbase Chief Legal Officer Paul Grewal stated that prediction markets fall under the regulatory authority of the U.S. Commodity Futures Trading Commission (CFTC), and the company will continue defending federal regulatory jurisdiction. The dispute over regulatory authority for prediction markets has now increasingly moved into the judicial arena; the CFTC has previously sued several state governments attempting to shut down such platforms.
Odaily News Letitia James has filed lawsuits against Coinbase and Gemini, alleging that they provide "disguised gambling" services through their prediction market platforms, violating New York state law.Regulators argue that this type of trading based on event outcomes (such as sports, elections) is essentially a form of gambling activity. They particularly question the platforms allowing participation from users aged 18 to 21, while New York law sets the minimum age for sports betting at 21. Prosecutors are seeking substantial fines and the disgorgement of profits, including claims of at least $2.2 billion from Coinbase and at least $1.2 billion from Gemini.The two companies have not yet formally responded, but Coinbase stated that prediction markets are regulated by the Commodity Futures Trading Commission, implying their legality falls under federal jurisdiction.