Coinbase's Chief Legal Officer Ryan VanGrack is challenging state regulators in four states over sports prediction markets, arguing that these regulators are illegally infringing on the exclusive federal regulatory authority of the Commodity Futures Trading Commission (CFTC) over derivatives such as event contracts. He pointed out that exchange-traded contracts on platforms like Kalshi (whose prices are set by buyers and sellers) are fundamentally different from traditional sports betting regulated by states. VanGrack warned that allowing each state to regulate independently would undermine the stability of the national derivatives market, and Congress intends to centralize this framework.