New York Sues Cryptocurrency Exchanges Over Prediction Markets

New York's attorney general has taken action against two prominent cryptocurrency exchanges, alleging they operate prediction markets in violation of state laws.

Coinbase Financial Markets and Gemini Titan are facing lawsuits claiming their platforms facilitate activities that fall under the definition of gambling. The New York State Gaming Commission requires licenses for companies operating these types of services.

The complaint filed by Attorney General Letitia James argues that Coinbase and Gemini's prediction markets do not require participants to have control over the outcome, fitting the state's legal definition of a game of chance. This is seen as a key factor in establishing whether these activities constitute gambling or not.