New York State Sues Coinbase and Gemini Over Alleged Illegal Operation of Prediction Markets

BroadChain has learned that at 03:30 on April 22, according to Cointelegraph,

New York Attorney General Letitia James has filed lawsuits against Coinbase and Gemini, accusing these two cryptocurrency exchanges of illegally operating unlicensed prediction markets. The lawsuit targets event-driven trading platforms, signaling that state-level regulators are increasing enforcement pressure on crypto companies.

This action is part of New York's ongoing crackdown on violations within the crypto industry, with the Attorney General's office considering these prediction market products as unregistered securities and commodities. As states increasingly intervene, regulatory scrutiny of similar platforms is expected to tighten further, potentially affecting the operational strategies of other exchanges offering similar services in the U.S.