Coinbase, Kalshi Denied Shield From State Prediction-Market Enforcement

The Second Circuit denied Coinbase and Kalshi interim protection from state prediction-market enforcement in Connecticut and New York, though the order does not halt trading or force existing positions to close. The ruling leaves the platforms exposed to state regulators while their broader legal challenge proceeds. It matters because it keeps alive the conflict between federal derivatives oversight and state gaming laws over event contracts. Watch whether the states move quickly to enforce, and whether the court grants relief on the merits.