New York Attorney General Letitia James (@Newyorkstateag) Filed Twin Lawsuits Tuesday Against Coinbase Financial Markets (@Coinbase) And Gemini Titan Llc (@Gemini) In Manhattan Supreme Court, Alleging The Companies' Prediction Market Operations Constitute Illegal, Unlicensed Gambling Under State Law.

James is seeking disgorgement of profits, civil fines equal to triple those profits, customer restitution, and prohibitions on serving users under 21 or marketing on college campuses.

Coinbase Chief Legal Officer Paul Grewal (@iampaulgrewal) pushed back sharply, arguing that prediction markets are "federally regulated national exchanges, registered with the CFTC" and that the company would "continue to fight for the federal oversight of these markets that Congress intended."

The New York suits arrive as a broader jurisdictional battle between federal and state regulators heats up. The CFTC moved on April 2 to block Arizona, Connecticut, and Illinois from imposing their own rules on prediction markets, setting up a direct conflict over which level of government holds authority over the sector.

The outcome of these cases could have significant implications for the fast-growing prediction markets industry and how it is regulated across the United States.