Regulation Action Against Coinbase: Nevada Board Targets Event Contracts and Licensing

Regulators target Coinbase over event contracts deemed gambling, as Nevada sues for licensing; Coinbase also faces liquidity risk amid Bitcoin price declines and ETF stock moves.

Rich by Coin

2026-02-08

Coinbase Global (COIN) faces liquidation risks as Bitcoin prices drop. About $388 million in loans are at risk with a 30% decline, rising to $812 million with a 50% drop.

The Nevada Gaming Control Board has filed a legal action against Coinbase Global for offering event contracts on its app. Regulators classify these contracts as gambling products that require a state license, arguing Coinbase violated licensing rules.

In related moves, ARK Invest disclosed a $22 million sale of Coinbase shares across several ETFs, including 92,737 shares from the ARK Innovation ETF, following a prior sale of 119,236 shares. The trades reflect ongoing institutional portfolio adjustments amid regulatory scrutiny.