Nevada | Crypto

Kalshi is looking to have Nevada’s lawsuit heard in federal court, again asserting it is subject only to federal commodity exchange laws. The US state of Nevada has sued Kalshi after the prediction market company lost its court challenge to stop the state’s regulator from taking action over its sports prediction markets. The US Court of Appeals for the Ninth Circuit on Tuesday denied Kalshi’s bid to stop Nevada’s gaming regulator from taking action on its sports event contracts, removing a block on the regulator launching a civil suit against the company. After the decision, the Nevada Gaming Control Board promptly filed a civil enforcement action in state court against Kalshi, which it said sought to block the company “from offering unlicensed wagering in violation of Nevada law.” Read more

A Nevada judge declined to grant regulators’ bid to halt Coinbase’s event contract markets, as the exchange presses a CFTC preemption argument in federal court. A Nevada state court denied regulators’ request for an emergency temporary restraining order (TRO) to immediately halt Coinbase’s new prediction market offering. Instead, the court set a hearing for next week so the exchange can respond, according to Coinbase chief legal officer Paul Grewal. The Nevada Gaming Control Board (NGCB) filed a civil enforcement action in Carson City on Monday, accusing Coinbase of offering unlicensed wagers on sports event contracts and asking for a TRO and preliminary injunction to block the products for Nevada residents. Read more

The enforcement action over wagers on sports event contracts followed Coinbase announcing the launch of prediction markets in all 50 US states. The Nevada Gaming Control Board announced that it had filed a civil enforcement action against Coinbase over wagers on sports event contracts. In Monday filings in the First Judicial District Court of the State of Nevada in and for Carson City, the Nevada Gaming Control Board sued Coinbase Financial Markets over allegations the company offered unlicensed wagers on sporting events. Authorities followed by requesting that the court grant a temporary restraining order and preliminary injunction preventing Coinbase from “operating a derivatives exchange and prediction market” related to sporting bets. “The Board takes seriously its obligation to operate a thriving gaming industry and to protect Nevada citizens,” said Mike Dreitzer, chair of the Nevada Gaming Control Board, in a Tuesday statement. “The action taken yesterday reinforces this obligation.” Read more

A Nevada judge has temporarily barred prediction market Polymarket from offering event contracts in the state, pushing back against claims that only the CFTC can police those markets. A Nevada state judge has temporarily forced onchain prediction market Polymarket to halt business in the state, with a ruling that challenges the industry’s argument that federal commodities law preempts state gambling rules.  In a Thursday order seen by Cointelegraph, the court granted the Nevada Gaming Control Board a 14‑day temporary restraining order (TRO) against Polymarket operator Blockratize. The order bans Polymarket from offering event‑based contracts to Nevada residents while the case develops. A preliminary injunction hearing is scheduled for Feb. 11. The order leans on Nevada gambling statutes, finding at this early stage that Polymarket’s sports and other event markets constitute unlicensed wagering rather than regulated financial products.  Read more

Nevada regulators shut down Fortress Trust on Oct. 22, citing insolvency that left the custodian holding roughly $200,000 in cash against $8 million owed in fiat and $4 million in crypto. The cease-and-desist order marked the second major Nevada trust-company collapse in two years, following Prime Trust’s entry into receivership in June 2023. Both firms […] The post Nevada shuts down Fortress Trust: Who holds your keys during custody consolidation? appeared first on CryptoSlate.