Coinbase Financial Markets, Inc. v. Nessel

Injunction denied; on appeal (6th Cir.)6th Cir.Platform v. State

Docket last checked November 8, 2026. Snapshot — not legal advice.

As of November 8, 2026, Michigan has a restriction on prediction-market platforms currently in effect. Michigan status and cases →

Overview

The fourth and slowest of Michigan’s four platform cases, and the only one in the Eastern District. Coinbase Financial Markets, Inc. — Coinbase’s CFTC-registered futures commission merchant, a broker rather than an exchange — sued Michigan’s Attorney General and Gaming Control Board in December 2025, before any of the others. Its preliminary-injunction motion sat fully briefed for six months while the parties filed round after round of supplemental authority: the Tennessee ruling, the Third Circuit’s Flaherty opinion, Blue Lake Rancheria, Judge Maloney’s two June denials, and the CFTC’s proposed rule.

On August 6, 2026 Judge Shalina D. Kumar denied the preliminary injunction (amended order August 7, ECF No. 58, 46 pp.). Her route differs from Judge Maloney’s: the order turns on the presumption against preemption, holding that the text of CEA § 2(a)(1)(A) fails to rebut the presumption that the Act does not supersede state gambling laws, and that Coinbase therefore failed on express preemption and on its remaining theories alike. Coinbase appealed immediately.

Changes

September 2026

  • Filing

    Coinbase followed Robinhood out of Michigan: under a stipulated order signed by Judge Kumar it stops offering sports contracts there and closes positions by October 10, while the state forbears.

    Stipulated order (E.D. Mich. ECF 65)

  • Schedule

    The Sixth Circuit paused Coinbase’s Michigan appeal until it decided Kalshi’s Ohio and Tennessee appeals, which it did four days later — against Kalshi. Coinbase’s status report is due about October 16.

    Sixth Circuit docket No. 26-1693 (Dkt. 8)

Timeline

December 2025

Coinbase Financial Markets sues Michigan’s Attorney General and Gaming Control Board and moves for a preliminary injunction.

August 2026

Judge Kumar denies the preliminary injunction; Coinbase appeals to the Sixth Circuit.

August 21, 2026

District proceedings are stayed pending the appeal.

September 21, 2026

The Sixth Circuit holds briefing in abeyance pending its decision in Kalshi’s Ohio and Tennessee appeals.

September 23, 2026

Stipulated order: Coinbase stops new Michigan sports contracts and closes positions by October 10; Michigan forbears while it complies.

September 25, 2026

The Sixth Circuit rejects the same preemption theory in Kalshi’s Ohio and Tennessee appeals, in a published opinion binding on this panel.

What's next: On appeal at the Sixth Circuit (No. 26-1693), where briefing was held in abeyance on September 21, 2026 pending Kalshi’s Ohio and Tennessee appeals, decided against Kalshi on September 25; a status report was due about October 16, and the public docket does not yet show it. District proceedings have been stayed since August 21. Under a September 23 stipulated order Coinbase was to stop new Michigan sports contracts and close open positions by 12:00 a.m. Eastern on October 10, 2026, with the State forbearing while it complies; no breach has been reported.

Parties

Plaintiffs

  • Coinbase Financial Markets, Inc.

Defendants

  • Dana Nessel (Michigan Attorney General)
  • Henry Williams (Executive Director, Michigan Gaming Control Board)
  • Jim Ananich, Mark Evenson, Deidre A. Lambert-Bounds, Andrew T. Palms and Joni M. Thrower Davis (Michigan Gaming Control Board)
This page is informational, not legal advice. Nearly every entry in this tracker is a preliminary ruling under appeal. Always verify a platform's current, location-specific eligibility directly with the venue before relying on this page.