Coinbase Appeals for Exclusive Federal Oversight of Prediction Markets

Coinbase has asked a federal appeals court to establish exclusive federal oversight of prediction markets, arguing that states should not regulate the sector independently.

The exchange filed an appellate brief with the U.S. Court of Appeals for the Second Circuit seeking confirmation that the Commodity Futures Trading Commission has sole jurisdiction over prediction markets.

Coinbase argues that the Commodity Exchange Act gives the CFTC authority over the market and should take priority over separate state rules. The dispute centers on whether prediction markets should follow one federal framework or face different requirements across the states.

The appeal places the scope of federal derivatives oversight at the center of Coinbase’s challenge. The Second Circuit will consider the exchange’s request for a ruling affirming the CFTC’s authority.