A U.S. court rejected a request from Nevada regulators to suspend Coinbase's operation of its prediction market.

PANews reported on February 5th that, according to Cointelegraph, a Nevada district court has rejected a request from state regulators for an emergency ban on Coinbase's operation of a prediction market. The Nevada Gaming Authority had previously filed a lawsuit accusing Coinbase of offering unlicensed sports betting products in the state and seeking a temporary restraining order. The court did not grant the emergency injunction but instead decided to hold a hearing next week to allow Coinbase to respond.

Coinbase Chief Legal Officer Paul Grewal stated that the company has simultaneously 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, and that the state regulator's attempt to classify these instruments as state-level gambling conflicts with the federal derivatives regulatory framework.