'Applesauce': Michigan judge denies Coinbase bid to block state enforcement of sports event contracts
Quick TakeA Michigan federal judge has rejected Coinbases preliminary injunction motion seeking to block potential state enforcement over its planned offering of sports event contracts.“Coinbases averments are, in a word, applesauce,” U.S. District Judge Shalina Kumar wrote in the ruling. A Michigan federal judge has denied Coinbases preliminary injunction bid to block state enforcement against sports event contracts. U.S. District Judge Shalina Kumar of the Eastern District of Michigan ruled on Thursday that Coinbase failed to establish that it is likely to succeed on the merits of its claims that federal law preempts Michigans jurisdiction. The crypto exchange sued Michigan in December 2025, arguing that prediction markets fall under the exclusive jurisdiction of the Commodity Futures Trading Commission under the federal Commodity Exchange Act (CEA) rather than state gaming regulators. Coinbase specifically seeks to use its platform to provide customers, including those in Michigan, access to event contracts offered by Kalshi. The exchange claims that Michigans gambling laws are “conflict preempted” because they frustrate Congresss efforts to create a uniform federal regulatory scheme and because complying with both the CEA and the states Lawful Sports Betting Act (LSBA) would be impossible, according to the filing. However, the judge rejected the arguments, holding that Coinbase failed to