Coinbase Shares Rise Despite Lawsuit Targeting Its Prediction Markets

Nevada Regulatory Action: Nevada's Gaming Control Board has sought a court order to prevent Coinbase from offering event-based contracts, arguing that such contracts require a gaming license under state law.

Coinbase's Market Performance: Despite regulatory pressures, Coinbase's stock has remained close to recent highs, closing at $165.12, reflecting a 13% increase for the day.

ARK Invest's Reduced Exposure: ARK Invest has decreased its exposure to Coinbase by selling approximately $22 million worth of COIN shares across several ETFs, reallocating funds to the digital asset platform Bullish.

Federal vs. State Regulation: Coinbase contends that prediction markets fall under federal jurisdiction, asserting that the Commodity Futures Trading Commission (CFTC) is the appropriate regulatory body, not state gaming regulators.