Michigan Judge Denies Coinbase Bid to Block State Sports Betting Enforcement
COIN is trading near its 52-week low of $139.11 (5.7% above the low).
Summary
A Michigan federal judge denied Coinbase's preliminary injunction to block state enforcement against sports event contracts, ruling the exchange failed to show federal law preempts state gambling regulations. The judge rejected Coinbase's argument that sports event contracts qualify as swaps under the Commodity Exchange Act, calling its claims 'applesauce.' This is a setback in Coinbase's broader legal battle over prediction markets, where it has sued multiple states and the CFTC has also sued states to assert federal oversight. The ruling directly impacts Coinbase's ability to offer event contracts via Kalshi in Michigan, a key part of its derivatives expansion. The case is part of a multi-state fight that could shape the regulatory landscape for crypto-based prediction markets.
At the time of this announcement, COIN was trading at $147.10 on NASDAQ in the Crypto Assets sector, with a market capitalization of approximately $38.4B. The 52-week trading range was $139.11 to $402.16. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: The Block.