Michigan judge dismisses Coinbase’s motion to block state enforcement action against sports event contracts.

A federal judge in Michigan has rejected Coinbase’s request for a preliminary injunction to block the state government’s enforcement actions against sports event contracts. U.S. District Judge Shalina Kumar of the Eastern District of Michigan ruled Thursday that Coinbase failed to prove it was likely to succeed on the merits of its claim that federal law preempts Michigan state jurisdiction. The cryptocurrency exchange sued Michigan in December 2025, arguing that prediction markets fall under the exclusive jurisdiction of the Commodity Futures Trading Commission (CFTC) under the federal Commodity Exchange Act (CEA), rather than state regulators. Coinbase specifically sought to provide customers, including those in Michigan, access to event contracts issued by Kalshi via its platform. According to the lawsuit, the exchange claimed Michigan’s laws constitute “conflict preemption” that undermines Congress’s efforts to build a unified federal regulatory system.