Just a day after its prediction market launch, Coinbase took to the courtroom to defend its new product, Chief Legal Officer Paul Grewal revealed. It sued the states of Michigan, Illinois, and Connecticut, where authorities argue that sports event contracts are an illegal form of gambling.

The crypto exchange operator claims only the U.S. Commodity Futures Trading Commission can regulate its products.

Coinbase has filed lawsuits against the US states of Michigan, Illinois, and Connecticut, escalating a growing legal fight.

Coinbase said on Wednesday it will start letting users trade stocks and event contracts tied to real-world outcomes, as the exchange expands beyond its crypto roots to compete more directly with rivals.

Kalshi has self-certified trading on the NCAA transfer portal, a decision that the NCAA has staunchly come out against.

In the jet wash of widespread sports betting has come the rise of prediction markets, where folks can wager on a wide variety of real-world events.