Coinbase is suing Connecticut, Michigan, and Illinois, arguing that state regulators cannot oversee prediction markets that fall under the Commodity Futures Trading Commission's authority. The lawsuits come as Coinbase prepares to launch its own prediction market platform in January 2026 through Kalshi, which is already CFTC-registered. The company claims state actions threaten its operations and violate federal law.

Coinbase is launching stock trading, prediction markets, and decentralized trading for Solana tokens as part of its strategy to become an all-in-one financial platform. Users will be able to trade stocks and crypto in a single app, with commission-free trading and plans for tokenized equities in the future.

Coinbase CEO Brian Armstrong mentioned popular crypto terms during an earnings call to pay off bets on prediction markets. This move sparked criticism for potentially manipulating those markets, with industry experts questioning the ethics of such actions. Armstrong later claimed it was a spontaneous decision.

Coinbase is set to unveil prediction markets and tokenized equities on December 17. The launch will feature in-house developed tokenized stocks, making it a significant step for the largest US crypto exchange.

Coinbase app code reveals plans for integrated prediction markets and tokenized stock trading. Independent researcher Jane Manchun Wong uncovered this through reverse-engineering the app's code, which hints at a collaboration with Kalshi, a regulated prediction-market operator. The company has yet to confirm these features ahead of a livestream event on December 17.

Coinbase is suing regulators in Michigan, Illinois, and Connecticut over their attempts to classify prediction markets as unlicensed gambling. The exchange argues these markets are financial derivatives under federal oversight, which could pave the way for broader access if they win. The lawsuits come amid a shift towards federal regulation, following the appointment of a pro-innovation CFTC chairman.

Coinbase is launching a suite of new products to position itself as a comprehensive financial platform, incorporating stocks, prediction markets, and advanced trading tools. CEO Brian Armstrong emphasizes the importance of tokenization and the goal of democratizing access to financial markets through on-chain assets. The move aims to retain crypto users and diversify revenue streams as the market evolves.

Coinbase is acquiring The Clearing Company to enhance its prediction markets. This move allows users to trade on real-world events alongside other assets like crypto and equities. The acquisition aims to leverage The Clearing Company's expertise to develop a comprehensive trading platform.

Coinbase is set to expand its trading app to include tokenized stocks, derivatives, prediction markets, and other assets, aiming to create an "everything exchange" for U.S. users, with plans for international rollout. This move intensifies competition with platforms like Robinhood and aligns with recent pro-crypto regulatory changes in the U.S. as the company seeks to enhance consumer engagement and become a leading financial services app.