Coinbase's Paul Grewal challenges state authority over prediction markets as Coinbase sues Connecticut
Paul GrewalChief Legal Officer of Coinbase, writing in a thread on X
Coinbase Chief Legal Officer Paul Grewal wrote on X that state efforts to control or block prediction markets violate the law. He said prediction markets differ from sportsbooks because they are neutral exchanges that match buyers and sellers.
“State efforts to control or outright block these markets stifle innovation and violate the law Prediction markets are fundamentally different from sportsbooks. Casinos win only if you lose and set odds to maximize their profits Prediction markets are neutral exchanges, indifferent to price, that match buyers and sellers.”
Official statement
Reporting
Reporting
Where this statement fits
Can Connecticut regulate sports prediction markets as gambling?
Connecticut announced enforcement against nine prediction-market companies on September 10, 2026. The action sharpened an existing dispute with the CFTC over whether sports-event contracts are subject to state gambling laws or exclusive federal commodities regulation.
Source and context
Official statement
About this source
Official account of September enforcement and the state's allegations. September 10 is the announcement date, not a verified signature date for every order. This announcement is not a finding that each named company committed every alleged violation.
Reporting
About this source
CoinDesk report published December 19, 2025 on Coinbase's lawsuits against Connecticut, Illinois and Michigan. It quotes Chief Legal Officer Paul Grewal's thread on X and links the posts.
Archived copy (opens in a new tab)Reporting
About this source
PYMNTS report published December 19, 2025 on Coinbase's lawsuits in Connecticut, Illinois and Michigan. It quotes Grewal's X thread and gives background on Connecticut's earlier demands to prediction-market platforms.
Archived copy (opens in a new tab)Before the quotation
Coinbase filed lawsuits against gaming regulators in Connecticut, Illinois and Michigan on December 18, 2025, seeking declaratory judgments that prediction markets fall under the exclusive jurisdiction of the CFTC. Connecticut's Department of Consumer Protection had sent demands to Kalshi, Robinhood and Crypto.com in early December.
After the quotation
On September 10, 2026, Connecticut's Department of Consumer Protection issued cease-and-desist orders to nine companies, including Coinbase, over sports event contracts.
How this statement is classified
The label describes this statement's response within the context above.
Why this label?
The case asks whether Connecticut can regulate sports prediction markets as gambling. Grewal wrote that state efforts to control or block these markets stifle innovation and violate the law, and that prediction markets are neutral exchanges that differ from sportsbooks. That expressly rejects state regulation of these markets as gambling, so we labeled it Condemned.
- Recorded on
- Published here
- People and groups discussed
- Connecticut Department of Consumer Protection
More from this case
Read the full caseConnecticut’s attorney general: sports event contracts are “not magically shielded by federal law”
“This is nothing more than the recycling of failed arguments from other prediction markets. Multiple courts have affirmed that sports event contracts are no different than sports betting and are not magically shielded by federal law.”Read statement
Cafferelli says four of nine companies are engaging with Connecticut
“We have received a handful of responses to our actions last week... We are working with those who have responded on next steps.”Read statement
Underdog sues Connecticut over prediction-market enforcement
Underdog
“Underdog Exchange DCM, Inc. v. Tong, No. 3:26-cv-01499 (D. Conn.), seeking declaratory and injunctive relief on Commodity Exchange Act preemption grounds.”Read statement
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- Coinbase's Paul Grewal challenges state authority over prediction markets as Coinbase sues Connecticut
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The Dispute Index. "Coinbase's Paul Grewal challenges state authority over prediction markets as Coinbase sues Connecticut". First published: 2026-09-26. Last updated: 2026-09-26. https://disputeindex.com/events/2845-coinbase-chief-legal-officer-paul-grewal-wrote-on