Coinbase Sues Three US States Over Prediction Market Regulation

Coinbase Global Inc. said it is suing the US states of Michigan, Illinois and Connecticut over their attempts to regulate prediction markets.

“These states have taken or threatened action against other prediction market players in an attempt to gain jurisdiction over something they have no legal right to regulate, and are likely to do the same against Coinbase as we enter the prediction market space,” the company said Thursday in an emailed statement. It will ask for court orders affirming that the states cannot interfere with the Commodity Futures Trading Commission’s exclusive jurisdiction over prediction markets, it said.

The litigation ...