Nevada Court Blocks Emergency Shutdown of Coinbase Prediction Markets

Highlights:

• A Nevada judge declined an emergency order and let Coinbase keep its products available for now.
• State regulators and Coinbase are clashing over whether federal law governs prediction markets.
• Similar legal fights in other states show rising scrutiny of prediction market platforms.

A Nevada state court declined to issue an emergency order against Coinbase’s prediction market products. The Nevada Gaming Control Board requested a temporary restraining order. Regulators asked the court to halt the products immediately. The judge rejected that request and scheduled a full hearing instead. Coinbase continues offering the contracts to Nevada users.

#Coinbase just caught a break in Nevada, where a judge declined to immediately block its prediction market products. At the same time, Bitcoin’s Coinbase Premium Gap has dropped to its lowest level in over a year—often a sign of institutional selling pressure.

Legal uncertainty… pic.twitter.com/Mu5L0Wwawx

— ChainAffairs ⚡ (@ChainAffairs) February 5, 2026

The hearing is set for next week in Carson City. The court did not decide on the merits. Rather, it permitted the proceeding to continue through normal briefing. The ruling barred any swift enforcement move. There were no restrictions imposed after the ruling.

Coinbase chief legal officer Paul Grewal confirmed the move upon the court filing. According to him, the judge refused to consider the case as an emergency. Grewal mentioned that Coinbase would respond during the hearing. He added that the products remain available during the process. The company has not declared modifications in the offering.

Nevada Regulators Argue State Law Applies to Event Contracts

The Nevada Gaming Control Board filed a civil enforcement action against Coinbase Financial Markets on Monday. The complaint was submitted in Carson City District Court. Regulators accused the company of offering unlicensed wagering products. The filing focused on event-based contracts tied to sports outcomes. Nevada law treats such activity as gambling.

🚨BREAKING: COINBASE FACES LEGAL ACTION IN NEVADA

Nevada gaming regulators have sued @Coinbase over alleged illegal sports wagering products.

The complaint claims Coinbase operated a derivatives exchange linked to sporting bets without approval.

Authorities are seeking a… pic.twitter.com/eq027o52IO

— BSCN (@BSCNews) February 4, 2026

State officials said the contracts resemble traditional sports betting markets. They argued the products fall under Nevada’s gaming statutes. Regulators said the activity threatens the state’s regulated gaming system. The board cited licensing requirements for wagering products. Based on those claims, it sought immediate court intervention.

Coinbase disputed the state’s position in its response. The company said the requested order extended beyond sports-related contracts. It argued the injunction would block all event contracts. That includes contracts tied to financial and commodity outcomes. Coinbase also challenged the state’s claim of urgency.

The company said similar contracts remain accessible through other platforms. Coinbase noted that Nevada residents can still reach identical products elsewhere. It argued that blocking its offering would not stop access. The filing noted that the move undermines the claim of irreparable harm. The company asked the court to allow a full legal review.

Federal Authority Dispute Deepens Over Coinbase Prediction Markets

Coinbase argued that federal law governs the disputed contracts. The company cited the Commodity Exchange Act. That statute assigns oversight authority to the Commodity Futures Trading Commission. Grewal said Congress granted the CFTC exclusive jurisdiction. He said states cannot reclassify federally regulated contracts. Coinbase also filed a related action in federal court.

The regulatory environment has also changed at the federal level this week. The CFTC rescinded a 2024 proposal related to event contracts. Mike Selig declared that the agency would not complete rules based on that notice. According to Selig, the proposal was based on a merit-based regulatory model rather than on explicit statutory power.

In the meantime, a federal judge temporarily blocked a cease-and-desist order against Kalshi in Tennessee. The Tennessee Sports Wagering Council issued the order. Kalshi contended that the state had no power over its activities. The judge suspended execution of the order pending the case.