{ "id": 74764, "date": "2026-04-22T08:57:45", "date_gmt": "2026-04-22T01:57:45", "guid": { "rendered": "https:\/\/hbbgroup.net\/new-york-targets-coinbase-gemini-in-fresh-crackdown-on-prediction-markets\/" }, "modified": "2026-04-22T08:57:45", "modified_gmt": "2026-04-22T01:57:45", "slug": "new-york-targets-coinbase-gemini-in-fresh-crackdown-on-prediction-markets", "status": "publish", "type": "post", "link": "https:\/\/hbbgroup.net\/en_us\/new-york-targets-coinbase-gemini-in-fresh-crackdown-on-prediction-markets\/", "title": { "rendered": "New York targets Coinbase, Gemini in fresh crackdown on prediction markets" }, "content": { "rendered": "

Attorney General Letitia James alleged that Coinbase and Gemini ran unlicensed markets, adding pressure on crypto companies as states move to regulate event-based trading platforms.<\/p>\n

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New York’s attorney general has filed lawsuits against crypto exchange operators Coinbase Financial Markets and Gemini Titan for allegedly violating state gambling laws, according to court records cited by Reuters.<\/p>\n

Copies of the complaints show the state alleges both exchanges failed to obtain licenses from the New York State Gaming Commission to operate their markets, Reuters reported<\/a>.\u00a0<\/p>\n

\u201cGambling by another name is still gambling, \u200band it \u200bis not \u2060exempt from regulation under our state laws and Constitution,\u201d Attorney General Letitia James said in a statement<\/a>.<\/p>\n

James said the lawsuit seeks to recover alleged illegal profits from operating prediction markets in the state, as well as restitution, and would bar Coinbase and Gemini from offering such products to individuals under 21 years of age.<\/p>\n

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Source<\/em><\/a>: Office of New York State Attorney General<\/em><\/figcaption><\/figure>\n

Related: <\/strong><\/em>Polymarket in talks to raise $400M at a $15B valuation: Report<\/strong><\/em><\/a><\/p>\n

State regulators crack down on prediction markets<\/h2>\n

The move fits into a broader push by state regulators, including New York, to assert control over prediction markets, which occupy a fast-growing corner of crypto commerce that allows users to bet on real-world events.<\/p>\n

Much of the recent scrutiny has centered on platforms like Polymarket and Kalshi<\/a>, which have drawn questions over whether their products fall under financial regulation or gambling laws.<\/p>\n

The tension has also reached the federal level. The Commodity Futures Trading Commission (CFTC) has taken legal action against several states<\/a> attempting to regulate prediction markets, arguing it has sole authority over the sector.<\/p>\n

New York\u2019s lawsuit underscores a key risk for crypto companies. Even as the federal stance has softened, state-level enforcement remains active. By targeting prediction-style markets, regulators may be opening a new front \u2014 one that could force platforms to rethink how these products are offered in major jurisdictions.<\/p>\n

Nevertheless, not every company is taking it lightly. As Cointelegraph reported<\/a>, Polymarket has filed a lawsuit against Massachusetts, arguing the state lacks authority to regulate prediction markets approved by the CFTC.<\/p>\n

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Source: <\/em>Neal Kumar<\/em><\/a>, chief legal office, Polymarket<\/em><\/figcaption><\/figure>\n

Related: <\/strong><\/em>NYSE parent ICE completes new $600M investment in Polymarket<\/strong><\/em><\/a><\/p>\n