Second Circuit Denies Coinbase, Kalshi Temporary Injunctions in Connecticut, New York Cases

Attorneys general in Connecticut and New York are free to continue with their civil lawsuits against Coinbase, Kalshi, and other designated contract market operators after a three-judge panel from the United States Second Circuit Court of Appeals denied Coinbase's and Kalshi's requests for injunctive relief on Tuesday. The panel has consolidated appeals of three cases in which Coinbase or Kalshi is the claimant. The panel has yet to rule on the merits of Coinbase's and Kalshi's appeals. This denial of temporary protection from state law enforcement may force both prediction market exchange operators to assess their approaches in the state.