Coinbase and Gemini are facing lawsuits in New York over claims their prediction market products constitute illegal gambling, increasing pressure on crypto-linked betting models.

On Blockchain Bulletin, recorded at Money2020 Asia, host Callum Williams outlined the action taken by Letitia James. Filed in Manhattan’s State Supreme Court, the cases highlight a tougher stance on prediction markets operating in digital asset ecosystems.

James said both firms’ offerings are “just illegal gambling operations”, underlining the regulator’s position on products that resemble wagering.

The cases land as prediction markets expand across crypto, raising questions over whether they fall under financial or gambling regulation. The outcome could shape how similar products are treated across the US.

Competition is also increasing. Kalshi is preparing to launch crypto perpetual futures tied to assets such as Bitcoin, positioning itself against exchanges like Coinbase.

Regulatory timelines are also in focus. US banks have asked the Treasury to extend consultation on the Genius Act, giving the Office of the Comptroller of the Currency more time to finalise proposals ahead of a planned 2027 rollout.

Despite scrutiny, adoption continues. DoorDash is exploring stablecoin payments through Stripe’s Tempo network, with co-founder Andy Fang pointing to the technology’s potential.

Industry discussion at Money2020 Asia reflected this split, with innovation advancing alongside tighter regulation.