Coinbase Shifts New York Prediction Markets Lawsuit to Federal Court

Coinbase has transferred a lawsuit brought by New York Attorney General Letitia James over its prediction markets business from state court to federal court, saying the dispute raises questions of federal law, according to ChainCatcher. Chief Legal Officer Paul Grewal said the complaint targets prediction-market products offered by Coinbase and Gemini, alleging they violate New York's gambling laws by letting users trade on outcomes tied to sports, entertainment and elections without the required licenses. Coinbase contends prediction markets should fall under a single national framework overseen by the U.S. Commodity Futures Trading Commission (CFTC) and said it will keep pressing for clearer federal rules. The case spotlights the boundary between state and federal oversight and could shape how prediction-market platforms are regulated in the U.S.