Nevada Judge Rejects State Bid to Halt Coinbase Markets

Crypto News Regulation

Nevada Judge Blocks State’s Bid to Halt Coinbase Prediction Markets

Written by Aaron S.,

Editor-In-Chief

Last Updated: February 05, 2026

Key Takeaways

A Nevada judge refused to stop Coinbase’s prediction market and set a new hearing for next week;
Regulators claim Coinbase offers unlicensed wagers on sports outcomes in violation of state law;
Coinbase says the contracts fall under CFTC oversight and that federal law overrides state action.

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Nevada Judge Blocks State’s Bid to Halt Coinbase Prediction Markets

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A Nevada judge has refused a request from state regulators to immediately shut down Coinbase’s $6.04B new prediction market.

Instead of approving an emergency order, the court scheduled a hearing for next week. The company’s legal chief, Paul Grewal, confirmed the update and said the exchange will present its side.

The case began when the Nevada Gaming Control Board (NGCB) accused Coinbase of running unlicensed betting services. In its filing, the board said the company’s event contracts on sports outcomes counted as illegal wagers under state law.

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It asked the court to block access to these markets for people in Nevada through a temporary restraining order and, later, a preliminary injunction.

Coinbase said Nevada’s request went far beyond sports-related contracts. It argued that the state’s order would stop Coinbase from listing any “event contracts” approved by the Commodity Futures Trading Commission (CFTC), even those linked to economic or commodity results.

The exchange also told the court that no urgent harm exists. It noted that Kalshi, a CFTC-approved exchange whose contracts Coinbase lists, can still legally offer the same products to users in Nevada while the case continues.

Alongside the state court case, Coinbase has filed a separate lawsuit in federal court in Nevada. It argues that the state’s enforcement actions violate federal law because Congress granted the CFTC exclusive jurisdiction over these contracts.

The National Collegiate Athletic Association (NCAA) has asked US regulators to temporarily stop prediction markets tied to college sports. What did NCAA president Charlie Baker say? Read the full story.