New York authorities slammed Coinbase and Gemini with lawsuits today, accusing the exchanges of illegally offering prediction markets without proper registration. The move targets platforms letting users bet on events like elections or sports, mirroring crackdowns on decentralized prediction tools amid surging Bitcoin volatility. Regulators claim these features violate state laws, potentially forcing the firms to halt operations or face hefty fines. This echoes last year's enforcement waves against BTC-linked derivatives, as officials tighten grips on crypto prediction markets to curb risks in the evolving landscape. Investors eye the fallout, with Coinbase shares dipping amid broader crypto market crash fears, while Gemini defends its compliance efforts. The suits highlight New York crypto lawsuit trends, pushing exchanges toward stricter oversight and impacting AI industry influence on betting tech.