A Nevada state court has rejected regulators’ request for an emergency temporary restraining order (TRO) that would have immediately shut down Coinbase’s newly launched prediction markets.
Instead, the court scheduled a hearing for next week to allow Coinbase to respond, according to the exchange’s chief legal officer, Paul Grewal.
The Nevada Gaming Control Board (NGCB) filed a civil enforcement action in Carson City on Monday, alleging that Coinbase was offering unlicensed wagers on sports-related event contracts. The regulator sought both a TRO and a preliminary injunction to block access to the products for Nevada residents.
Coinbase Challenges Case in State and Federal Court
In a filing on Tuesday, Coinbase argued that Nevada’s proposed order went far beyond sports betting and would effectively prevent the exchange from offering any Commodity Futures Trading Commission (CFTC)–regulated event contracts in the state, including contracts linked to financial or commodity outcomes.
Coinbase also argued in court that there is no real risk of irreparable harm, noting that Kalshi—the CFTC-registered marketplace whose contracts Coinbase lists—can continue offering the same products directly to Nevada residents while the case moves forward.
Grewal said Coinbase has since taken the fight to federal court in Nevada, seeking to block the state’s enforcement action on the grounds that it violates federal law.
“Congress gave the CFTC exclusive jurisdiction over these listed contracts,” Grewal said. “It’s Congress that calls the shots.”
In its filing, Coinbase maintains that the Commodity Exchange Act grants the CFTC “exclusive jurisdiction” over swaps and event contracts traded on regulated exchanges, and that Nevada’s attempt to classify those products as state-regulated gambling is preempted by federal derivatives law.
The dispute comes just days after a Nevada judge issued a 14-day temporary restraining order requiring Polymarket to suspend certain event markets in the state.
Nevada is not alone in pushing back against prediction markets. In January, Tennessee’s Sports Wagering Council ordered several platforms, including Kalshi and Polymarket, to stop offering sports event contracts to residents.
Earlier, in December, Coinbase followed Kalshi’s lead by suing regulators in Connecticut, Illinois, and Michigan, arguing that prediction markets listed on CFTC-regulated venues fall under federal jurisdiction.
