Detroit joins Michigan's legal fight against Coinbase over prediction markets

Detroit is stepping into a legal battle between Coinbase and Michigan regulators. The city plans to file an amicus brief by April 3, backing state officials in their dispute over prediction markets. Meanwhile, a separate crypto project, DeepSnitch AI, is nearing the end of its presale phase. The lawsuit centres on whether prediction markets should fall under state gambling laws or federal oversight. Michigan authorities argue these markets violate local regulations and require stricter control. Coinbase, however, insists they should be managed by the Commodity Futures Trading Commission, a federal body.

Detroit's legal team received permission to formally support the state's position. Their brief will reinforce Michigan's claim that prediction markets need local regulation. The filing deadline is set for April 3.

In the broader crypto landscape, US states have taken varied approaches to regulation over the past five years. New York enforced strict BitLicense rules as early as 2015, while Wyoming introduced crypto-friendly laws like SPDI charters between 2019 and 2021. Texas approved Coinbase's operations in 2021 and later incentivised crypto mining, whereas California proposed sweeping digital asset bills by 2024. States like Florida and Oklahoma, meanwhile, eased regulations to encourage innovation by 2026.

Separately, DeepSnitch AI, a tool for smart contract auditing and market intelligence, is wrapping up its presale. The final deadline is March 31, 2023, at 11 am UTC. Investors using the promo code DSNTVIP50 can still claim an extra 50% bonus before the sale closes. Detroit's involvement adds weight to Michigan's case against Coinbase, with the amicus brief due in early April. The outcome could influence how prediction markets are regulated across the US. Meanwhile, DeepSnitch AI's presale enters its final hours, offering a last chance for investors to participate with added incentives.