Kalshi Lawsuit Rocks Sixth Circuit Court, Coinbase Sees Record Crypto Trading Volume

Kalshi is facing a lawsuit in the U.S. Court of Appeals for the Sixth Circuit over its sports betting contracts, which could set a precedent for the industry's regulation.

Judges in Cincinnati heard arguments on July 30, with Judge Eric L. Clay questioning whether products widely viewed as sports gambling fall under the Commodity Exchange Act and if the CFTC should have exclusive control over them.

The case has implications beyond Kalshi, as there's already a circuit split brewing between Ohio and Tennessee courts, which could lead to conflicting state laws and further confusion for prediction market platforms like Kalshi.

Meanwhile, Coinbase released its Q2 2026 earnings report, showing a total revenue of $1.22 billion, missing Wall Street's expectations, but with a record crypto trading volume market share of 10.3% and a 106% increase in prediction market revenue quarter over quarter.