Coinbase fended off an emergency attempt by Nevada regulators to immediately halt its prediction markets after a state court declined to grant a temporary restraining order.
The Nevada court instead scheduled a hearing for next week, giving Coinbase time to respond to claims from the Nevada Gaming Control Board that the exchange was offering unlicensed sports wagers.
The NGCB alleged Coinbase’s event contracts amounted to illegal gambling and sought to block the products for Nevada residents through a civil enforcement action filed in Carson City.
“Congress gave CFTC exclusive jurisdiction over these listed contracts, and it's Congress that calls the shots,”
Said Coinbase chief legal officer, Paul Grewal.
Coinbase argued that the Commodity Exchange Act grants the Commodity Futures Trading Commission exclusive authority over regulated event contracts and that Nevada’s action is preempted by federal law.
The exchange also said there was no irreparable harm because Kalshi, whose contracts Coinbase lists, can continue offering the same products directly in Nevada.
The dispute follows a recent Nevada ruling that forced Polymarket to suspend certain event markets and comes amid similar pushback from other US states against prediction market platforms.