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Coinbase has filed lawsuits against the US states of Michigan, Illinois, and Connecticut, escalating a growing legal fight over who has the authority to regulate prediction markets in the United States.
According to a Bloomberg report, Coinbase said the three states have either taken action or threatened to act against prediction market operators, despite lacking the legal authority to do so.
According to court filings, Coinbase plans to roll out prediction market access to U.S. customers starting in January 2026, including in Illinois. Coinbase Chief Legal Officer Paul Grewal said the cases are meant to clarify a point the company views as settled law.
The lawsuits come one day after Coinbase announced plans to offer event-based contract trading through a partnership with Kalshi, a CFTC-regulated prediction markets platform.
He argued that state-level efforts to block or control these markets undermine innovation and conflict with federal law. In its Illinois filing, Coinbase warned that state interference could cause “immediate and irreparable” harm to its business.
“Prediction markets fall squarely under the jurisdiction of the CFTC, not any individual state gaming regulator,” Grewal said in a post on X.
