"New York's lawsuits against Coinbase and Gemini assert that their event-based trading platforms are illegal gambling, as users stake money on outcomes beyond their control."
"The state's position is clear: these contracts are games of chance, not legitimate financial instruments, and thus the platforms operated without the necessary licenses."
"Coinbase's Chief Legal Officer stated that the company will advocate for federal oversight under the CFTC, arguing that prediction markets should be federally regulated."
"The conflict is fundamentally about jurisdiction, with platforms claiming that event-based contracts are derivatives, which fall under federal regulation."
New York has intensified its enforcement against crypto platforms by filing lawsuits against Coinbase Financial Markets and Gemini Titan. The state alleges that their event-based trading platforms, which allow users to bet on real-world outcomes, constitute illegal gambling. New York argues that these contracts are essentially bets and not legitimate financial instruments, thus requiring state gaming licenses. The lawsuits also highlight concerns about underage participation, as users as young as 18 can engage in these activities, contradicting the state's 21+ betting age requirement.
Read at news.bitcoin.com
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