Nevada Court Denies Request to Halt Coinbase Prediction Markets
- A Nevada state court denied the Nevada Gaming Control Board’s request for a temporary restraining order against Coinbase’s new prediction market.
- The court has scheduled a hearing for next week to allow Coinbase to respond to the allegations of offering unlicensed wagers.
- Coinbase argues that the requested order would prevent it from offering any Commodity Futures Trading Commission (CFTC) regulated “event contracts” in Nevada.
- Coinbase has also filed in federal court, claiming that CFTC has exclusive jurisdiction over these contracts, which Congress supports.
- This legal battle follows a recent ruling where Polymarket was forced to suspend certain event markets in Nevada under a similar TRO.
The ongoing dispute highlights tensions between state and federal jurisdictions regarding prediction markets and event contracts, as seen with actions taken by other states like Tennessee against platforms including Kalshi and Polymarket.
With the denial of the TRO, Coinbase can continue its operations while contesting claims that its offerings violate state regulations on sports betting and gambling.(Source)
