Nevada regulators have moved to block Coinbase from offering its event- and prediction-style contracts to state residents, escalating a high-stakes legal fight over whether these crypto products are gambling or federally regulated derivatives. What happened - The Nevada Gaming Control Board filed a civil enforcement suit in state court, asking a judge for a temporary restraining order and a preliminary injunction to stop Coinbase from offering its event contracts inside Nevada. - The complaint alleges Coinbase’s event contracts “function like” unlicensed sports wagers under Nevada law and that the company did not hold the state gaming license required to offer them. The filing asks the court to halt the products immediately while the state pursues its claims. Why it matters - Prediction markets and event contracts have grown rapidly as crypto platforms let users take positions on sports outcomes and other real-world events. Coinbase launched a prediction market product in partnership with established market operators to tap that demand. - The core legal question is whether these products fall under state gaming statutes—or under federal derivatives law, enforced by the Commodity Futures Trading Commission (CFTC). A federal classification would undercut state-level enforcement; a state classification would expose platforms to gaming regulation and licensing requirements. Parallel legal battles - Coinbase has pushed back by suing multiple states in federal court, arguing event contracts are regulated by the CFTC, not by individual state gaming regulators. Those suits have targeted states including Connecticut, Illinois and Michigan. - The CFTC chair has signaled a move toward clearer federal rules for event contracts and indicated the agency may issue guidance that could affect ongoing state cases. If the CFTC adopts a stronger federal framework, exchanges asserting CFTC jurisdiction would gain leverage—but state enforcement actions continue in the meantime. A wider trend - Nevada’s action follows similar enforcement efforts: a Nevada court recently granted a temporary restraining order that briefly barred another major prediction platform from offering event contracts in the state. Regulators in multiple states have issued cease-and-desist letters or sued operators they say are offering unlicensed wagering. What’s next - Courts will have to decide whether state gaming authorities or the CFTC have primary jurisdiction over these products. The outcome could reshape how crypto exchanges structure prediction markets and whether they must obtain state gaming licenses or operate under federal derivatives rules. (Featured image: Shutterstock; chart: TradingView) Read more AI-generated news on: undefined/news

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