Coinbase [COIN] stock was trading above $145 after New York City Council launched an investigation into the advertising conduct of four prediction-market platforms, including Coinbase.
The inquiry increases scrutiny on Coinbase’s growing prediction-market business, but COIN only reacted slightly, indicating investors do not see the latest news presenting an immediate danger to the company.
New York examines Coinbase advertising
New York City Council Speaker Julie Menin confirmed the investigation into Coinbase on August 12 and confirmed that it also covers Polymarket, Kalshi, and Gemini Titan. Menin said prediction markets “aggressively entice consumers to bet and wager” across sports, politics, culture, and other events. She added that the council intends to address “deceptive and predatory marketing practices.”
Reuters reported on August 12 that the letter listed concerns about undisclosed payments to influencers, simulated trading, and promoting material that could reach minors.
The City Council cannot bring criminal charges, but it can request documents, issue subpoenas, hold hearings, and propose consumer-protection rules.
The investigation is unrelated to the lawsuit filed in April by New York Attorney General Letitia James alleging Coinbase event contracts are unlicensed gambling. But Coinbase maintains that prediction markets are federally regulated derivatives overseen by the Commodity Futures Trading Commission.
Is the investigation affecting COIN stock?
COIN traded at $149.67 on August 13, gaining 0.42% during the session.
The stock has remained roughly between $145 and $153 following its fall in late July, but so far, the new investigation has not led to another significant sell-off.
Trading activity has eased during the consolidation, while price momentum remains relatively weak, which means buyers are not convinced enough to participate. This leaves COIN caught between support around $145 and resistance near $153–$155, but a move above that resistance could put $160 back in focus.
If, however, COIN drops below $145, then the lows of around $140 after earnings would become key to keep an eye on.
Final Summary
- New York is probing the ads of Coinbase and three other prediction market platforms.
- COIN is still trading around $145, with little indication so far that investors consider the inquiry an imminent threat.