BlockBeats News, August 7th, a federal judge in Michigan rejected Coinbase's request for a preliminary injunction to block the state government from enforcing sports event contract regulations. U.S. District Court Judge Shalina Kumar ruled on Thursday that Coinbase failed to demonstrate that its claim was likely to succeed on the merits, specifically whether federal law preempts Michigan's jurisdiction.

The cryptocurrency exchange platform sued the state of Michigan in December 2025, arguing that the prediction market falls within the exclusive jurisdiction of the Commodity Futures Trading Commission (CFTC) under the Commodity Exchange Act (CEA), rather than state-level regulatory authorities.

Coinbase specifically sought to use its platform to provide access to event contracts issued by Kalshi to customers, including those in Michigan. According to the complaint, the exchange alleged that Michigan's laws constitute "conflict preemption" because these laws frustrate Congress's efforts to establish a uniform federal regulatory scheme.