Michigan Court Rejects Coinbase's Bid for Preliminary Relief

Coinbase Financial Markets' bid for preliminary relief in Michigan was rejected by U.S. District Judge Shalina Kumar on August 6.

The company had argued that sports event contracts offered through federally regulated prediction markets fall under the Commodity Exchange Act, which would give the Commodity Futures Trading Commission (CFTC) exclusive jurisdiction and preempt conflicting state restrictions.

Kumar concluded that Coinbase failed to show a likelihood of success on its federal preemption claims, rejecting the company's argument that sports event contracts necessarily qualify as swaps under the Commodity Exchange Act.