A Nevada state court declined regulators’ request for an emergency temporary restraining order to immediately stop Coinbase’s new prediction-market offering and set a hearing next week so the exchange can respond, Coinbase chief legal officer Paul Grewal said.
The Nevada Gaming Control Board (NGCB) filed a civil enforcement action in Carson City, accusing Coinbase of offering unlicensed wagers tied to sports event contracts. The NGCB sought a TRO and a preliminary injunction to block those products for Nevada residents.
Coinbase argued in court that Nevada’s requested order was overly broad — extending beyond sports betting to effectively bar the exchange from offering any Commodity Futures Trading Commission (CFTC)-regulated “event contracts” in the state, including contracts tied to financial or commodity outcomes. Coinbase also told the court there was no genuine showing of irreparable harm, noting that Kalshi, the CFTC-registered market whose contracts Coinbase lists, can continue to provide the same products directly to Nevada users while litigation proceeds.
Grewal said Coinbase has also filed a federal lawsuit in Nevada seeking to enjoin the state’s enforcement effort as a violation of federal law. Coinbase contends Congress granted the CFTC exclusive jurisdiction over these listed contracts and that the Commodity Exchange Act preempts state attempts to treat those instruments as state-regulated gambling.
The dispute follows related actions in other jurisdictions. A Nevada judge recently issued a 14-day TRO that forced Polymarket to suspend certain event markets in the state. In January, Tennessee’s Sports Wagering Council ordered several platforms, including Kalshi and Polymarket, to stop offering sports event contracts to Tennessee residents. In December, Coinbase sued regulators in Connecticut, Illinois and Michigan, arguing that prediction markets listed on a CFTC-regulated venue fall under federal jurisdiction.
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