Crypto.com Affiliate Sues Washington Over Prediction Market Regulation

The Crypto.com-affiliated exchange, North American Derivatives Exchange Inc., has filed a federal lawsuit against Washington officials in an attempt to prevent them from enforcing state gambling laws on its prediction markets. The exchange, which operates under the name OG Prediction Markets and Crypto.com | Derivatives North America, claims that Washington's efforts to regulate its activities are unconstitutional and preempted by federal law.

The complaint cites a recent injunction against Kalshi as an imminent threat, arguing that if Washington is allowed to enforce its laws, it will suffer unrecoverable revenue losses, weaken its position in the market, and create a regulatory patchwork incompatible with its federal obligations. OG also invokes the CFTC's July 14 order protecting completed Michigan event contracts, which it claims protects its own activities.

The exchange argues that Congress gave the CFTC exclusive jurisdiction over transactions on designated contract markets, creating a uniform national derivatives system that states cannot override. It seeks a permanent injunction barring Washington officials from enforcing wagering laws against OG and asks the federal court to declare Washington's gambling laws unconstitutional as applied to its exchange.