Coinbase Loses Bid to Block Michigan Enforcement of Sports Betting Laws

Coinbase Financial Markets lost its bid for preliminary relief in Michigan after U.S. District Judge Shalina Kumar refused to block state officials from enforcing sports betting laws against the company's event contracts.

The ruling leaves Michigan's sports betting authority intact while Coinbase continues challenging state jurisdiction nationwide.

Federal courts remain divided over whether CFTC-regulated sports contracts preempt state gambling and betting laws, with some judges questioning whether Congress intended the Commodity Exchange Act to sweep sports wagering into the federal swaps framework.

The CFTC has taken the opposite institutional position, with Chairman Michael Selig repeatedly saying the agency has exclusive jurisdiction over federally regulated prediction markets.