New York targets Coinbase, Gemini in fresh crackdown on prediction markets

New York's attorney general has filed lawsuits against Coinbase Financial Markets and Gemini Titan for allegedly violating state gambling laws. The state alleges both exchanges failed to obtain licenses from the New York State Gaming Commission to operate their prediction markets. The lawsuits seek to recover alleged illegal profits, restitution, and bar Coinbase and Gemini from offering such products to individuals under 21 years of age. This move is part of a broader push by state regulators to assert control over prediction markets, a fast-growing corner of crypto commerce. The tension has also reached the federal level, with the Commodity Futures Trading Commission taking legal action against several states attempting to regulate prediction markets. State-level enforcement remains active, posing a key risk for crypto companies operating in the space.