New York Sues Coinbase and Gemini Over Prediction Markets in Major Crypto Crackdown
New York has filed lawsuits against Coinbase and Gemini, accusing both companies of running illegal prediction market platforms that violate state gambling laws.
Authorities argue that these platforms allow users to bet on real-world events. Such as sports and elections without proper licenses, classifying them as unregulated gambling operations. The state claims the companies bypassed strict regulations by offering “event contracts” instead of traditional betting, while also allowing users under the legal gambling age of 21 to participate. Officials are seeking to shut down these services in New York, recover profits, and impose financial penalties.
The case highlights a growing conflict between state regulators and federal authorities over who controls prediction markets. The outcome could have major implications for crypto platforms, potentially reshaping how event-based trading products are regulated across the U.S.
Clever Robot News Desk 26th April 2025
