Shift

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<div class="key-points-section">
 Key Points:
 <ul>
 <li>Coinbase files suit against states, demands federal oversight for prediction markets.</li>
 <li>CEO Armstrong asserts state rules stifle American competitiveness.</li>
 <li>Potential impacts on U.S. market structure and CFTC jurisdiction.</li>
 </ul>
</div>
Coinbase CEO Brian Armstrong, in a December 22 post on X, advocated for exclusive CFTC regulation of prediction markets, amidst lawsuits against Michigan, Illinois, and Connecticut.
The legal dispute underscores a pivotal regulatory question for prediction markets, potentially affecting their growth and competitiveness, as Coinbase's collaboration with Kalshi aims to expand market participation.
<h2 id="coinbase-challenges-state-laws-advocates-cftc-oversight">Coinbase Challenges State Laws, Advocates CFTC Oversight</h2>
<a href="https://coincu.com/news/kalshi-polymarket-prediction-duopoly/" rel="noopener noreferrer nofollow">Coinbase filed a lawsuit</a> against Michigan, Illinois, and Connecticut, asserting that prediction markets are federally regulated by the CFTC under the Commodity Exchange Act. CEO Brian Armstrong emphasized that state intervention hampers U.S. innovation. The lawsuit seeks injunctive relief to avoid business impacts. <a href="https://www.coindesk.com/policy/2025/12/19/coinbase-files-lawsuits-in-3-states-over-attempts-to-regulate-prediction-markets" rel="noopener noreferrer nofollow">Coinbase files lawsuits against regulations on prediction markets in three states</a>.
Market responses and political reactions have been significant. Paul Grewal, Coinbase's Chief Legal Officer, declared on X that the actions by these states "violate the law." This indicates ongoing tensions between state and federal oversight.
<blockquote>
 Brian Armstrong, Co-founder &amp; CEO, Coinbase, stated: "Prediction markets should be regulated by the CFTC. Any state government claiming otherwise is hindering Americans from using tools that help enhance their competitiveness."
</blockquote>
<h2 id="federal-vs-state-regulation-potential-shift-in-u-s-markets">Federal vs. State Regulation: Potential Shift in U.S. Markets</h2>
Did you know? The U.S. prediction market landscape could witness a pivotal shift if the CFTC assumes primary oversight, potentially centralizing market regulation and reducing fragmented state involvement.
The current price of Bitcoin (BTC) stands at $88,980.92 with a market cap of $1.78 trillion, as reported by CoinMarketCap. The market has seen a 0.78% gain in 24 hours, but a significant 21.01% drop over 90 days. The 24-hour trading volume reached approximately $20 billion.
<figure class="wp-block-image aligncenter size-large">
 <a href="https://coincu.com/wp-content/uploads/2025/12/Bitcoin-daily-chart-on-0013-UTC-on-December-22-2025file.jpeg" rel="noopener noreferrer nofollow"> <img src="https://coincu.com/wp-content/uploads/2025/12/Bitcoin-daily-chart-on-0013-UTC-on-December-22-2025file.jpeg" alt="bitcoin-daily-chart-5193" class="wp-image-384803"> </a>
 <figcaption class="wp-element-caption">
 Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 00:13 UTC on December 22, 2025. Source: <a href="https://coinmarketcap.com/currencies/bitcoin/" rel="noopener noreferrer nofollow">CoinMarketCap</a>
 </figcaption>
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Coincu's research suggests that federal jurisdiction might enhance <a href="https://coincu.com/news/coinbase-banks-crypto-pilots/" rel="noopener noreferrer nofollow">consistency in regulatory practices</a> across states. This can foster clearer guidelines for investment and innovation in prediction markets, potentially spurring technological advancement and financial growth nationwide.
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 <td>DISCLAIMER:&nbsp;The information on<a href="https://coincu.com/" rel="noopener noreferrer nofollow"> this website</a> is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.</td>
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</figure> <a href="https://coincu.com/uncategorized/coinbase-sues-states-prediction-market/" rel="noopener noreferrer nofollow">Read original article on coincu.com</a>

Coinbase Sues States Over Prediction Market Regulation

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