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.