COINBASE SUES THREE STATES OVER PREDICTION MARKET REGULATION

Summary from the TLDR Crypto newsletter

Coinbase filed federal lawsuits against Connecticut, Michigan, and Illinois, arguing that prediction markets fall under the CFTC's exclusive federal jurisdiction rather than state gaming boards. The Illinois Gaming Board issued cease-and-desist letters to Kalshi, Robinhood, and Crypto.com in April over sports event contracts, claiming state law violations. Chief Legal Officer Paul Grewal argues Congress deliberately excluded only specific commodities like onions from CFTC jurisdiction, making all other subjects, including sports, federally regulated.