New York AG Sues Coinbase, Gemini Over Prediction Markets

The AG asserts that event contracts on these platforms are "quintessentially gambling" because outcomes are typically outside bettors’ control or amount to games of chance. In response, Coinbase's Chief Legal Officer, Paul Grewal, stated the company will continue to advocate for federal oversight of these markets.

This legal action occurs as prediction markets experience a surge in popularity, with Polymarket reportedly aiming for a $400 million raise at a $15 billion valuation, and Kalshi recently securing $1 billion at a $22 billion valuation, indicating significant investor interest and sector expansion.