U.S. District Judge Shalina D. Kumar denied Coinbase Financial Markets’ request for a preliminary injunction against Michigan officials on August 6, leaving state enforcement authority intact while litigation continues. The ruling means Coinbase failed to establish the likelihood of success needed for early court protection against Michigan’s sports-betting rules.
Coinbase argued that sports-related event contracts offered through federally regulated prediction markets fall under the Commodity Exchange Act and the Commodity Futures Trading Commission’s exclusive jurisdiction. Kumar rejected the company’s preliminary preemption case, finding that sports event contracts do not automatically become federally protected swaps simply because they trade on a regulated derivatives venue.
The decision does not end Coinbase’s lawsuit or finally resolve every underlying legal question. Instead, Michigan can continue applying its gambling framework while the case proceeds, making the broader federal-versus-state jurisdiction fight the central issue still awaiting resolution.
Source: U.S. District Court for the Eastern District of Michigan.
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