New York Attorney General sues Coinbase, Gemini for ‘illegal gambling’ on prediction market platforms
New York Attorney General Letitia James is suing Coinbase and Gemini, alleging their prediction market platforms operate as illegal, unregulated gambling sites.Summary
New York Attorney General Letitia James has filed a lawsuit against cryptocurrency exchanges Coinbase and Gemini, accusing them of operating illegal gambling businesses through their prediction market platforms. The state claims these services violate local gambling laws by allowing participants under 21 to place bets on events such as sports and elections without proper regulatory oversight. James is seeking fines, restitution, and the forfeiture of profits generated from these activities.
In response, Coinbase Chief Legal Officer Paul Grewal argued that these prediction markets are already federally regulated by the Commodity Futures Trading Commission (CFTC), asserting that the company will defend its position in federal court. This conflict highlights an ongoing jurisdictional battle between state authorities, who cite local gambling protections, and the CFTC, which maintains that these markets fall under its exclusive federal authority.
(Source：The Block)