New York state regulators are taking a bold step to crack down on unlicensed prediction market businesses, filing a lawsuit against two prominent cryptocurrency exchanges, Coinbase and Gemini. The lawsuit, filed by the New York State Department of Financial Services (DFS), seeks to halt the operation of prediction markets on both platforms, citing concerns over the lack of regulatory oversight and potential risks to consumers. Prediction markets, which allow users to bet on future events, have gained popularity in the cryptocurrency space, but regulators are worried that they may be operating outside the bounds of existing laws and regulations. The DFS is seeking a court order to shut down the prediction markets and impose penalties on the exchanges for allegedly engaging in unlicensed activity.
New York sues Coinbase and Gemini, seeking to halt unlicensed prediction market businesses AP News
