PANews reported on April 22 that, according to The Block, New York Attorney General Letitia James has filed a lawsuit against Coinbase and Gemini, accusing the two companies of illegally offering betting services on events such as sports and elections through their prediction market platforms, violating New York State law. James specifically pointed out that the platforms allowed participants aged 18 to 21 to participate, while New York State law requires mobile sports betting to be played by individuals aged 21 and older. New York State is seeking a fine of at least $2.2 billion against Coinbase and $1.2 billion against Gemini.

Coinbase's Chief Legal Officer responded that prediction markets are subject to federal regulation by the CFTC, and the matter is currently being heard in a New York federal court. Coinbase will continue to pursue the federal regulation intended by Congress. Earlier this year, Coinbase launched its prediction market service nationwide through the CFTC-regulated Kalshi platform. Late last year, Gemini's prediction market product, Gemini Titan, also received CFTC approval. The CFTC Chairman asserts "exclusive jurisdiction" over the field, while states argue that the platforms violate local gambling laws.