Coinbase’s head of litigation says states are “gaslighting” on prediction markets
Coinbase's litigation head accused states of misrepresenting federal law regarding their attempts to block prediction markets.Summary
Ryan VanGrack, Coinbase’s VP of legal and global head of litigation, strongly criticized state regulators attempting to block prediction markets launched in partnership with Kalshi, filing lawsuits in Connecticut, Illinois, Michigan, and Nevada. VanGrack argues that states are "gaslighting" by claiming these markets would go unregulated without state intervention, asserting that the Commodity Futures Trading Commission (CFTC) has exclusive jurisdiction over swaps and derivatives, which includes event contracts, under the Commodity Exchange Act. He contends that states are wrongly trying to carve sports contracts out of the federal definition of swaps. Coinbase distinguishes these exchange-traded contracts, overseen by the CFTC, from traditional sportsbook wagers regulated by states. VanGrack warned that subjecting national derivatives markets to a "patchwork of 50 regulators" undermines market stability, emphasizing that Congress established a unified federal framework for derivatives.
(Source：CoinDesk)