Coinbase is suing Connecticut, Illinois, and Michigan over regulation of prediction markets, asserting jurisdiction belongs to the CFTC, not state gaming regulators. Prediction markets let users speculate on events, separate from sportsbooks. Congress excluded specific underliers from the commodity definition, placing prediction markets under CFTC purview, according to Coinbase.

Read more at Yahoo Finance: Coinbase files lawsuits in 3 states over attempts to regulate prediction markets