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.

Online prediction betting site Polymarket has received approval to launch in the United States after the CFTC announced a "no-action position" regarding certain regulations. The site previously faced investigations from the CFTC and Justice Department, which concluded without any charges. Polymarket also acquired derivatives exchange QCX, enhancing its presence in the U.S. market.