Coinbase sues Michigan, Illinois, and Connecticut over prediction market regulation issues.

PANews reported on December 19th that, according to The Block, Coinbase has filed lawsuits in Michigan, Illinois, and Connecticut, escalating the ongoing legal dispute surrounding states' regulatory authority over prediction markets. The lawsuits, filed Thursday, seek court rulings to confirm that prediction markets fall under the exclusive jurisdiction of the CFTC, not state gambling regulators. Coinbase argues that Congress has designated the CFTC as the sole regulator of prediction markets, and states have no right to intervene. In its lawsuit filed in Illinois, Coinbase is seeking declaratory and injunctive relief, claiming that state intervention would cause it "direct and irreparable" harm. This legal action comes a day after Coinbase announced its entry into the prediction market space through a partnership with Kalshi, a prediction market platform regulated by the CFTC.