Crypto.com's OG prediction exchange has sued Washington officials to stop the state from applying gambling laws to its event contracts — before any enforcement action has begun. The complaint leans on federal commodities law and the CFTC's recent Michigan intervention, and it lands as Washington's injunction against rival Kalshi raises the stakes.
Crypto.com's prediction-market platform has gone to federal court to shield itself from Washington regulators, asking a judge to rule that state gambling laws cannot reach its event contracts. North American Derivatives Exchange Inc. — which operates as OG Prediction Markets and Crypto.com | Derivatives North America — filed the lawsuit on Wednesday in the Western District of Washington, naming Attorney General Nick Brown and members of the state Gambling Commission as defendants.
A pre-emptive strike, not a defense
No cease-and-desist order or enforcement case prompted the filing. Instead, the exchange argues that Washington's stance and its recent injunction against Kalshi amount to an imminent threat that officials will target OG next. Washington has held since December 2025 that offering or trading event contracts is unauthorized within the state.
OG wants the court to declare those gambling laws preempted as applied to its exchange and to permanently bar the state from enforcing wagering rules against it. The company has not obtained any temporary or preliminary protection yet. It argues that Congress handed the CFTC exclusive jurisdiction over trades on designated contract markets, leaving a national derivatives framework that states cannot override.
Leaning on the CFTC's Michigan order
The complaint draws heavily on the CFTC's July 14 intervention in Michigan, where the agency blocked Kalshi from cancelling previously executed sports contracts after a state court ordered them voided and refunded. The regulator warned that forced unwinding could distort prices and weaken confidence that completed transactions stay enforceable.
OG also frames sports contracts as commercial hedging tools, suggesting broadcasters, retailers and hospitality businesses could use them against revenue tied to game outcomes — though the filing offers only hypothetical cases and names no current users.
A widening state-by-state fight
The exchange has been here before. It sued Nevada regulators in September 2025 after a cease-and-desist, lost a preliminary injunction, and appealed to the Ninth Circuit. In June it filed a near-identical complaint against New York's attorney general. The courts remain split, and gambling attorney Daniel Wallach counts states winning 19 of 23 preliminary rulings in prediction-market cases.
Source: Bitcoin News
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