Coinbase Resists Nevada Attempt to Block Prediction Markets

Coinbase shares stay strong as Nevada seeks ban and Ark Invest sells $22M in stock.

  • Coinbase shares remained resilient near recent highs despite Nevada regulators seeking an emergency court order to block its prediction markets.
  • The Nevada Gaming Control Board argues event-based contracts constitute illegal gambling under state law, requiring a license and enforcing a higher age minimum.
  • Coinbase contends its Kalshi-powered markets are governed by the CFTC, not state gaming laws, and is already fighting similar orders in other states.
  • Meanwhile, Ark Invest sold approximately $22 million in COIN stock across several ETFs, reallocating funds to digital asset platform Bullish.

On Friday, February 8, Coinbase Global Inc. (COIN) defied regulatory pressure from Nevada, closing at $165.12 after a 13% intraday surge. This resilience came even as the state’s Gaming Control Board filed a civil enforcement action seeking an immediate halt to the exchange’s prediction markets. Regulators claimed these event contracts for sports and elections are illegal gambling under Nevada law.

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Consequently, the board requested a permanent injunction and a temporary restraining order against Coinbase. It specifically noted the platform allows users 18 and older to trade, violating Nevada’s 21+ gambling age restriction. However, Coinbase launched its U.S. prediction markets last month in partnership with CFTC-registered Kalshi.

The company insists these markets are federally regulated, with the CFTC as the sole oversight authority. Coinbase stated that state enforcement efforts “stifle innovation and violate the law,” according to its federal court filings against similar orders in Connecticut, Michigan, and Illinois. Meanwhile, investment firm ARK Invest continued reducing its position.

On Friday, ARK sold roughly $22 million worth of COIN shares across several of its exchange-traded funds. The firm reallocated these funds to the digital asset platform Bullish.

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