Coinbase’s chief legal officer, Paul Grewal, has moved New York Attorney General Letitia James’ prediction markets lawsuit from state court to federal court, arguing that the case raises disputed questions of federal law over how event contracts are regulated. The move escalates a legal dispute that could determine whether prediction markets fall under federal commodities regulation and the scope of the US Commodities and Futures Trading Commission (CFTC) or state gambling laws. The lawsuit was filed against Coinbase Financial Markets and Gemini Titan, alleging their prediction market offerings violate New York gambling law by allowing users to bet on sports, entertainment and elections without a state gaming license. The company has stated that it will continue to fight for federal oversight of these markets.