NY AG Escalates Suits Against Coinbase, Gemini Calling Prediction Markets Illegal Gambling

New York AG Letitia James sued Coinbase Financial Markets and Gemini Titan on April 21, 2026, alleging their prediction markets operate as unlicensed gambling, allowing 18-20-year-olds to bet and lacking gaming licenses. This follows earlier suits the same day targeting securities violations like operating without a BitLicense and offering unregistered interest-bearing products. The actions intensify state-federal clashes after CFTC suits against states on April 2 and a Kalshi court win, driving Coinbase stock volatility, cautious crypto sentiment, and risks to exchange trading volumes and product offerings.