Michigan federal judge rejects Coinbase's motion to block state enforcement of sports betting contract regulations.
Regulation & Gov ·
A U.S. District Judge in Michigan rejected Coinbase's attempt to block the state from enforcing regulations on sports betting contracts, dismissing the exchange's legal arguments with sharp language. In Thursday's ruling, Judge Shalina Kumar characterized Coinbase's position as "applesauce," signaling skepticism toward the company's constitutional claims against Michigan's enforcement authority.
The case centers on whether Michigan can enforce its sports event contract regulations against Coinbase's operations in the state. Coinbase had sought an injunction to prevent the state from enforcing these rules, arguing the restrictions violated its rights. The judge's denial of the motion leaves Michigan's enforcement powers intact and removes a legal barrier the exchange had sought.
The decision leaves open whether Coinbase will appeal or pursue alternative legal strategies. The ruling also does not clarify the precise scope of Michigan's enforcement mechanisms or whether other exchanges might face similar challenges in the state.