Key Insights: Coinbase stock fell almost 3% after a Michigan judge refused to stop the state from enforcing its gambling law. The court said Coinbase did not show that federal law takes prior
Coinbase (COIN) stock dropped after a Michigan federal judge denied the company’s request to stop state action over sports event contracts. The decision lets Michigan continue enforcing its gambling law while the case moves ahead, adding fresh pressure on the shares.
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Coinbase stock closed at $145.41 on Thursday, down 3% for the day. The shares traded between $150.61 and $145.14 before the market closed. The fall came after a federal judge in Michigan ruled against the crypto exchange in a closely watched legal fight.
Coinbase (COIN) Stock Outlook | Source: Google Finance The case started in December 2025 when Coinbase sued the state of Michigan. The company argued that sports event contracts should be regulated by the Commodity Futures Trading Commission under the Commodity Exchange Act instead of state gambling regulators.
Coinbase wants to give users access to sports event contracts offered by Kalshi. The exchange said federal law already covers these products and that Michigan should not stop them from being offered in the state.
Judge Shalina Kumar did not agree with that argument, the ruling showed. She denied Coinbase’s request for a preliminary injunction, which means Michigan can continue enforcing its gambling law while the lawsuit continues.
The judge also said Coinbase did not show that it was likely to win the case. She found that the company had not proved that the sports event contracts should be treated as swaps under federal law. She also rejected the claim that following both federal rules and Michigan law would be impossible.
In her written ruling, the judge said that following the state law may be costly or difficult, but that does not mean it cannot be done. Because of that, she decided Coinbase had not met the legal standard needed for an injunction.
The ruling is an early win for Michigan, but it does not end the lawsuit. The legal fight will continue as both sides argue over who should regulate sports event contracts.
Coinbase believes these contracts are financial products that belong under federal oversight. Michigan says they fall under its gambling law, giving the state the power to take action.
Coinbase Prediction Market Outlook | Source: Captain GM The case is also being watched because other prediction market platforms have faced similar questions in different states. The outcome could shape how these products are treated in the future.
For now, Michigan can keep enforcing its rules while the court considers the rest of the case. That leaves Coinbase with another legal hurdle as it pushes to expand access to prediction markets.
The court ruling also drew fresh attention to COIN stock and where it could trade next. Market watcher Chad on X said the shares may be forming a triple bottom near the $140 level. The same analyst pointed to a bullish divergence on the Relative Strength Index, a signal some traders use when studying price charts.
According to the chart, $180 is the first price level that needs to be cleared before buyers regain control. The analyst also said a move above $210 would give stronger support to the idea that the Coinbase stock has found a bottom. The market analyst added that they are still buying the stock through dollar cost averaging despite the recent weakness.
Based on the latest market data, COIN stock has a market value of $38.36 billion. The stock is trading far below its 52-week high of $402.16, but it remains above its 52-week low of $139.11. Investors will now be watching both the court case and the next move in the share price.
The post Coinbase Stock Falls 3% After Judge Rules Against Sports Contract Lawsuit appeared first on The Coin Republic.
