Kalshi and Coinbase lose interim relief bid as appeals continue

Kalshi and Coinbase were denied an injunction pending appeal by the Second Circuit in prediction-market cases involving New York and Connecticut, according to Unchained. The decision leaves the appeals unresolved rather than settling the underlying legal disputes.

A limited procedural decision

Unchained, in a report published at 9:32 AM ET on November 4, described a two-page order issued Tuesday by Judges Walker, Jacobs and Bianco. The judges considered three cases together and concluded that the companies had not met the required standard for an injunction pending appeal.

The order does not decide whether federal law preempts state authority. It also does not rule on contracts that are already open, according to Unchained.

Damages exposure remains unresolved

New York's damages claim could total at least 36 billion dollars, according to Unchained. That figure represents a potential claim, not damages awarded by the order.

The supplied news summary was published on Nov 4, 2026, at 4:30 PM ET. The central distinction for market readers is between the denial of interim relief and a final appellate ruling: the appeals remain pending.

What it means for prediction markets

• The legal outcome is still open. Denial of an injunction pending appeal does not resolve the federal-preemption question.
• Existing contracts were not adjudicated. The order should not be read as a ruling on contracts already open.
• The damages figure is contingent. New York's claim could reach at least 36 billion dollars, but the order does not establish liability or award that amount.