Coinbase files lawsuits in 3 states over attempts to regulate prediction markets

Coinbase has filed lawsuits against Connecticut, Michigan, and Illinois to combat regulations on prediction markets. This move may increase uncertainty in the crypto industry, potentially affecting investor confidence. Chief Legal Officer Paul Grewal announced this decision on X, warning that such regulations could hinder the healthy development of the market and limit options for many users and investors. The lawsuits deepen the divide between state governments and regulatory bodies, suggesting broader battles in courts ahead. Such legal threats could have direct impacts on price volatility and trading volumes across the crypto market.