Coinbase legal chief accuses states of 'gaslighting' in prediction market crackdown
Ryan VanGrack says state regulators are misrepresenting federal law to block platforms like Kalshi and Polymarket
·PredWire Original
Synthesized from 1 article, 5 markets
- Coinbase head of litigation Ryan VanGrack publicly accused state regulators of 'gaslighting' the public by misrepresenting federal law in their efforts to shut down prediction markets.
- VanGrack's unusually sharp language signals Coinbase may be preparing to join the legal fight defending platforms like Kalshi and Polymarket from state-level enforcement actions.
Why It Matters
A major crypto exchange entering the prediction market regulatory battle could reshape the legal landscape — Coinbase has deep pockets and a track record of aggressive litigation against regulators. If Coinbase argues states lack jurisdiction under federal preemption doctrine, it could accelerate a Supreme Court showdown over who controls prediction market regulation.
Smart Take: VanGrack choosing the word 'gaslighting' isn't an accident — it's the language of someone spoiling for a fight. Coinbase has been quietly watching prediction markets prove their product-market fit while regulators fumble their response. Now that platforms are facing coordinated state action, Coinbase sees an opening to establish favorable precedent before launching their own prediction market products. The timing suggests they believe the legal momentum has shifted in favor of federal preemption arguments.
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