Coinbase has initiated legal action against Connecticut, Michigan, and Illinois, asserting that prediction markets should be regulated by the Commodity Futures Trading Commission (CFTC) rather than individual state gaming regulators. The lawsuits aim to clarify jurisdictional authority, arguing that state-level attempts to regulate or ban these markets hinder innovation and contravene federal law. Coinbase's move underscores the ongoing tension between state and federal oversight in the rapidly evolving cryptocurrency sector.