Second Circuit Denies Coinbase, Kalshi Interim Protection in State Cases

The U.S. Court of Appeals for the Second Circuit denied interim protection involving Coinbase and Kalshi in Connecticut and New York, leaving both platforms without temporary protection from state enforcement.

The order does not resolve the underlying appeals. It also does not direct either platform to halt trading or close existing positions.

The ruling adds to a wider dispute over state authority to regulate prediction markets. In Utah, an appeals court denied Kalshi’s request for interim relief in September after a lower court allowed the state to apply gambling laws to the company’s sports contracts.

The Commodity Futures Trading Commission has also sued Utah, seeking to block state investigations or enforcement against prediction markets regulated at the federal level. The commission’s lawsuit puts it on the opposite side of the state in the dispute over regulatory authority.

The appeals remain pending.