Coinbase Sues Three U.S. States
Coinbase has filed lawsuits against three U.S. states, claiming they are unlawfully blocking federally regulated event contracts.
The cryptocurrency exchange has taken legal action against state authorities in Connecticut, Michigan, and Illinois. The dispute centers on the planned launch of a new financial service that Coinbase argues should fall exclusively under federal jurisdiction.
Coinbase is preparing to introduce trading in so-called event contracts. These instruments allow users to trade on predictions about future events, such as economic data releases, elections, or other developments with economic significance. The service is being developed in partnership with U.S.-based operator Kalshi and, according to company announcements, is expected to be available across the United States starting in January 2026.
The conflict arises at the state level. Authorities in some states have determined that these types of contracts may fall under local gambling laws. Coinbase strongly disagrees with this interpretation, arguing that event contracts are derivative instruments and, under U.S. law, are regulated at the federal level. According to the company, oversight of such products lies with federal institutions rather than individual states.
Through its lawsuits, Coinbase aims to prevent state gambling regulations from being applied to products that have been approved under federal derivatives market rules. The company warns that a lack of uniform regulations nationwide could either make it impossible to offer the service or result in a situation where a product that is legal at the federal level is blocked locally.
The dispute highlights a broader tension between state and federal regulations in the United States, particularly when it comes to new financial products. For Coinbase, entering the event contracts market is part of a broader strategy to expand beyond traditional cryptocurrency trading and secure new sources of revenue.
