Coinbase To Halt Michigan Sports Contracts Under State Deal

Coinbase Financial Markets will halt new sports-related event contracts for Michigan customers and close existing positions by Oct. 10, placing a state-level restriction on products tied to a broader prediction-market dispute.

The company must stop offering new contracts by 12 a.m. ET (4 a.m. UTC) and close all remaining open customer positions by the same deadline. The agreement covers contracts traded through KalshiEX and other designated contract markets.

Michigan will refrain from enforcement while Coinbase complies and related appeals continue in the U.S. Court of Appeals for the Sixth Circuit. The agreement preserves both sides’ rights and defenses and does not settle whether Michigan can regulate event contracts registered with the Commodity Futures Trading Commission as gambling.

Michigan considers sports-related event contracts to be sports betting subject to state licensing. Coinbase has argued that the products are derivatives governed by federal law. A federal court denied Coinbase’s request for a preliminary injunction in August, leaving the broader dispute unresolved.

The halt and closure deadline is Oct. 10.