A Nevada state court has declined to immediately halt Coinbase’s newly launched prediction market products, dealing an early setback to state regulators seeking emergency action against the crypto exchange.
Nevada Court Rejects Temporary Restraining Order
The Nevada Gaming Control Board asked the court for an emergency temporary restraining order to stop Coinbase from offering event-based contracts it claims amount to unlicensed sports betting. The judge denied the request and instead scheduled a hearing for next week, giving Coinbase time to formally respond to the allegations.
Coinbase Cites Federal Preemption
In its filing, Coinbase said the requested order would go far beyond sports wagering and effectively ban all federally regulated event contracts in Nevada, including those linked to financial and commodity outcomes. The exchange emphasized that the contracts are listed through a federally regulated marketplace overseen by the Commodity Futures Trading Commission.
Coinbase also argued that regulators failed to show irreparable harm, noting that the same contracts remain available to Nevada users through the original federally registered platform while the case proceeds.
Parallel Federal Lawsuit Filed
Alongside the state case, Coinbase has filed suit in federal court seeking to block Nevada’s enforcement action altogether. The exchange argues that federal law grants exclusive authority over these contracts to the CFTC, preempting state attempts to classify them as gambling.
The dispute reflects growing tension nationwide, as multiple states move to restrict prediction markets while platforms push back, citing federal jurisdiction and regulatory consistency.
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