Second Circuit Denies Interim Relief to Kalshi and Coinbase in State Actions

The practical effect is procedural, not substantive: the preemption question remains open while state enforcement moves forward, meaning Kalshi and Coinbase now face parallel tracks of litigation rather than a single federal forum. This matters most for prediction-market operators whose state-by-state exposure was assumed to be shielded by federal jurisdiction, and for states testing how far their consumer-protection and gambling frameworks reach. The key thing to watch is whether the preemption argument gets resolved on the merits before state proceedings generate rulings that shape the operating environment.