Coinbase’s Chief Legal Officer, Ryan Van Grack, has warned that several states are misinterpreting federal laws to block prediction markets. He accused these states of distorting facts to mislead the public and lawmakers, a tactic he describes as “gaslighting.” Prediction markets are online platforms where users can bet on the outcomes of various events, such as political elections or economic trends. Major cryptocurrency firms like Coinbase have promoted these markets in recent years to provide investors with better informational analysis. State regulators argue that prediction markets often resemble gambling and require stringent oversight under financial regulations. However, Coinbase and similar platforms maintain that these markets fall within the legal framework and aim to enhance users’ decision-making opportunities. This dispute has emerged amid increased financial regulatory scrutiny by various U.S. states, creating tension between federal and state laws and causing instability in crypto markets. Experts caution that if these legal complexities persist, they could negatively impact the crypto and fintech sectors by hindering innovation and investment. Resolving this legal conflict within the next few months is critical to establishing clear regulations and restoring investor confidence. Meanwhile, Coinbase and other platforms are working to strengthen their legal positions to continue offering their services in the market.
Source: coindesk
