A federal judge in Michigan rejected Coinbase's request for a preliminary injunction that would have blocked state enforcement actions against sports event contracts. Judge Shalina Kumar of the U.S. District Court for the Eastern District of Michigan ruled Thursday that Coinbase failed to show its claims are likely to succeed on the merits.
The ruling centers on whether federal law preempts Michigan's jurisdiction over prediction-market products. Coinbase sued Michigan in December 2025, arguing that prediction markets fall under the exclusive jurisdiction of the Commodity Futures Trading Commission under the Commodity Exchange Act, not state regulators. The exchange sought to provide access to event contracts issued by Kalshi to its customers, including those in Michigan.
According to the complaint, Coinbase claims Michigan law constitutes conflict preemption, arguing the state's statutes frustrate Congress's goal of establishing a unified federal regulatory framework. The judge's decision clears the way for Michigan to continue enforcement while the underlying case moves forward.
A federal judge in Michigan has denied Coinbase's application for a preliminary injunction that sought to block state enforcement actions against sports event contracts.
Judge Shalina Kumar of the U.S. District Court for the Eastern District of Michigan ruled Thursday that Coinbase failed to show its claims are likely to succeed on the merits. The exchange's case rests on the argument that federal law preempts Michigan's jurisdiction over sports event contracts.
Coinbase sued Michigan in December 2025, arguing that prediction markets fall under the exclusive jurisdiction of the Commodity Futures Trading Commission under the Commodity Exchange Act — not state regulators. The exchange particularly sought to provide its customers, including those in Michigan, with access to event contracts issued by Kalshi.
According to the complaint, Coinbase says Michigan law constitutes conflict preemption, because the state's rules frustrate Congress's efforts to build a unified federal regulatory framework. With the injunction denied, Michigan is not barred from continuing enforcement while the underlying lawsuit proceeds.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
