Detroit set to enter Michigan's battle against Coinbase prediction markets
28.03.2026
14432
Lawyers representing the US city of Detroit plan to file an amicus brief in Coinbase's lawsuit against Michigan, arguing that federal regulators should have authority in overseeing prediction markets and not states.
Detroit set to enter Michigan's battle against Coinbase prediction markets
Detroit's lawyers are jumping into the legal ring — they're filing an amicus brief backing Michigan in its fight against Coinbase's prediction markets. Judge Shalina Kumar just gave them until April 3 to drop the paperwork. This is getting messy.
Coinbase sued Michigan, Connecticut, and Illinois back in December — a preemptive strike before launching its prediction markets. Their argument? The CFTC should regulate this stuff, not state gambling cops. Michigan's not having it.
Prediction markets like Coinbase, Kalshi, and Polymarket are getting sued left and right by states. CFTC Chair Michael Selig tried to back them with new rules, but it's still a legal warzone. Federal vs. state — who wins?
Where will the chips fall for platforms dealing with state and federal authorities?
Stephen Piepgrass from Troutman Pepper Locke says: "The more the CFTC can do in this space to put a comprehensive regulatory regime around it, the more likely it is for courts who are looking at the issue to say 'actually, yes, this is a CFTC jurisdiction issue — this really is not just an end run around sports gambling bans in particular states.'"
This could go all the way to the Supreme Court, thanks to the 2018 Murphy v. NCAA decision that let states regulate sports gambling. States are pushing back hard, but courts are split.
- • Nevada just blocked Kalshi from operating there.
- • Arizona hit Kalshi with criminal charges for illegal gambling on sports and elections.
- • But a Tennessee judge protected Kalshi from state gambling laws in February.
Detroit casinos pulled in over $200M in revenue for Jan-Feb 2026, paying $24M+ in taxes to Michigan. That's real money — and the state wants to protect it.
#CFTC#Coinbase#legislation#regulation
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