Nevada regulator fails to secure emergency ban on Coinbase prediction markets
The post Nevada regulator fails to secure emergency ban on Coinbase prediction markets appeared on BitcoinEthereumNews.com.
A Nevada state court has rejected an attempt by state regulators to immediately halt Coinbase’s newly-launched prediction markets, marking a setback for the Nevada Gaming Control Board in its bid to block the popular crypto exchange’s event-based trading products under state gaming laws. Paul Grewal, Coinbase’s chief legal officer, stated that the court ruled a hearing set to take place next week. At this hearing, the firm will be allowed to present its case. On Monday, the Nevada Gaming Control Board (NGCB) filed a civil enforcement action in the First Judicial District Court in Carson City, accusing Coinbase of offering unlicensed gambling through sports and other real-world outcome contracts without a Nevada gaming license. The complaint alleged that such contracts, including wagers related to sporting events and elections, fall under the state’s strict gaming statutes and require a license normally reserved for casinos and sportsbooks. NGCB sues Coinbase, initiating a significant legal battle The Nevada Gaming Control Board sued Coinbase in Carson City, alleging that the company is offering bets on unlicensed sports-event contracts and calling on authorities to take action. To halt its operation, the Nevada state governmental agency submitted a request for a TRO and a preliminary injunction to restrict resident access to these products. Coinbase responded to this request, claiming that the nature of Nevada’s order was overbroad and would effectively prohibit the issuance of any event contracts regulated under the requirements of the Commodity Futures Trading Commission (CFTC) in the state. This includes contracts that determine financial or commodity outcomes. Notably, the crypto exchange filed this complaint on Tuesday, February 3. Apart from this argument, the company also defended itself in court, alleging that the agency’s claims lack evidence to back them further, noting that they did not pose any harm since Kalshi, which chose Coinbase Custody…
Filed under: News - @ February 5, 2026 2:30 pm