A Nevada judge has refused a request from state regulators to immediately shut down Coinbase’s
$5.38B
new prediction market.
Instead of approving an emergency order, the court scheduled a hearing for next week. The company’s legal chief, Paul Grewal, confirmed the update and said the exchange will present its side.
The case began when the Nevada Gaming Control Board (NGCB) accused Coinbase of running unlicensed betting services. In its filing, the board said the company’s event contracts on sports outcomes counted as illegal wagers under state law.
Did you know?
Subscribe – We publish new crypto explainer videos every week!
What is Polkadot in Crypto? (DOT Animated Explainer)
It asked the court to block access to these markets for people in Nevada through a temporary restraining order and, later, a preliminary injunction.
Coinbase said Nevada’s request went far beyond sports-related contracts. It argued that the state’s order would stop Coinbase from listing any “event contracts” approved by the Commodity Futures Trading Commission (CFTC), even those linked to economic or commodity results.
The exchange also told the court that no urgent harm exists. It noted that Kalshi, a CFTC-approved exchange whose contracts Coinbase lists, can still legally offer the same products to users in Nevada while the case continues.
Alongside the state court case, Coinbase has filed a separate lawsuit in federal court in Nevada. It argues that the state’s enforcement actions violate federal law because Congress granted the CFTC exclusive jurisdiction over these contracts.
The National Collegiate Athletic Association (NCAA) has asked US regulators to temporarily stop prediction markets tied to college sports. What did NCAA president Charlie Baker say? Read the full story.
