Coinbase Moves Prediction Markets Lawsuit to Federal Court

[kevin1]

Coinbase is escalating its legal battle with New York regulators by shifting a key lawsuit to federal court. Chief legal officer Paul Grewal said the case involves “substantial questions of federal law,” particularly around how prediction markets should be regulated.

The lawsuit was originally filed by Letitia James, who claims Coinbase and Gemini offered unlicensed betting products to New York users. By moving the case, Coinbase is signaling that it believes prediction markets fall under federal — not state — jurisdiction.

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the core dispute around prediction markets continues to hinge on whether they are classified as derivatives or gambling instruments under US law