A U.S. court rejected the Nevada regulator's request to suspend Coinbase's operation of the prediction market

A local court in Nevada, USA, has rejected the state regulator's request for an emergency ban on Coinbase's operation of prediction markets.

The Nevada Gaming Control Board had previously filed a lawsuit, accusing Coinbase of offering unlicensed sports event contract betting products in the state and seeking a temporary restraining order. The court did not approve the emergency injunction but instead decided to hold a hearing next week, allowing Coinbase to respond. Coinbase's Chief Legal Officer Paul Grewal stated that the company has simultaneously filed a lawsuit in the state's federal court, claiming that the Commodity Exchange Act grants the Commodity Futures Trading Commission (CFTC) "exclusive jurisdiction" over swaps and event contracts listed on regulated exchanges, and that the state regulator's attempt to classify these tools as state-level gambling conflicts with the federal derivatives regulatory framework.