A Nevada state court docket denied regulators’ request for an emergency non permanent restraining order (TRO) to instantly halt Coinbase’s new prediction market providing.
As a substitute, the court docket set a listening to for subsequent week so the change can reply, according to Coinbase chief authorized officer Paul Grewal.
The Nevada Gaming Management Board (NGCB) filed a civil enforcement action in Carson City on Monday, accusing Coinbase of providing unlicensed wagers on sports activities occasion contracts and asking for a TRO and preliminary injunction to block the merchandise for Nevada residents.
Coinbase fights case in state and federal court docket
In a Tuesday filing, Coinbase argued that Nevada’s requested order was broader than sports activities betting and would successfully bar it from providing any Commodity Futures Buying and selling Fee (CFTC) regulated “occasion contracts” within the state, together with these tied to monetary or commodity outcomes.
The corporate additionally instructed the court docket there was no real declare of irreparable hurt as a result of Kalshi, the CFTC‑registered market whose contracts Coinbase lists, can proceed to supply the identical merchandise straight to Nevada customers whereas litigation proceeds.
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Grewal mentioned that Coinbase has now gone to federal court docket in Nevada as nicely, looking for to block the state’s enforcement effort as a violation of federal regulation.
“Congress gave CFTC unique jurisdiction over these listed contracts,” he mentioned, “and it is Congress that calls the photographs.”
In its transient, Coinbase contends that the Commodity Alternate Act grants the CFTC “unique jurisdiction” over swaps and occasion contracts traded on regulated exchanges, and that Nevada’s try to recharacterize these devices as state regulated playing is preempted by Congress’s derivatives framework.
The conflict comes simply days after a Nevada choose granted a 14‑day TRO forcing Polymarket to droop sure occasion markets within the state.
Nevada isn’t the one US state pushing again in opposition to prediction markets. In January, Tennessee’s Sports activities Wagering Council ordered a bunch of platforms, together with Kalshi and Polymarket, to halt sport event contracts for its residents.
In December, Coinbase followed Kalshi’s lead and sued regulators in Connecticut, Illinois and Michigan, arguing that prediction markets listed on a CFTC-regulated venue fall beneath federal jurisdiction.
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Cointelegraph by Christina Comben Nevada Judge Rejects Ex Parte Bid to Halt Coinbase Markets cointelegraph.com 2026-02-05 09:49:22
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