Cryptocurrency exchange Coinbase has filed lawsuits against Michigan, Illinois, and Connecticut over their attempts to regulate prediction markets.
The lawsuits, filed Thursday, argue that the states lack legal authority to impose their own rules on prediction market platforms, which allow users to trade on the outcomes of events such as sports, elections, and economic events.
In a statement regarding the suit, Coinbase said, “These states have taken or threatened action against other prediction market players in an attempt to gain jurisdiction over something they have no legal right to regulate, and are likely to do the same against Coinbase as we enter the prediction market space.”
