Coinbase's Vice President of Legal, Ryan VanGrack, has criticized several U.S. state regulators for allegedly misinterpreting federal laws to expand their oversight of prediction markets. Following its partnership with Kalshi, Coinbase has filed lawsuits in Connecticut, Illinois, Michigan, and Nevada, where regulators issued cease-and-desist orders against prediction market products, labeling them as illegal gambling. VanGrack argues that these actions threaten users and insists that the U.S. Commodity Futures Trading Commission (CFTC) has exclusive jurisdiction over such markets under the Commodity Exchange Act. VanGrack emphasized that prediction market products, including event contracts, are federally regulated, and state attempts to classify them as gambling lack legal foundation. He highlighted that the CFTC has effectively regulated derivatives markets and issued advisories on insider trading in event contracts. Coinbase maintains that exchange-based prediction markets differ from traditional sports betting, with market prices set by participants rather than operators. VanGrack acknowledged states' roles in consumer protection but warned against a fragmented regulatory approach that could destabilize the market.