Crypto.com Exchange Sues Washington State Over Gambling Laws
The Crypto.com-affiliated exchange OG Prediction Markets has filed a federal lawsuit in Washington state against Attorney General Nick Brown and members of the Washington State Gambling Commission.
The lawsuit claims that Washington's state gambling laws are unconstitutional and preempted by federal commodities law, which regulates transactions on designated contract markets.
OG cites the Commodity Futures Trading Commission's (CFTC) July 14 intervention in Michigan, where it blocked Kalshi from cancelling previously executed sports contracts after a state court ordered them voided and refunded.
The exchange argues that withdrawing from Washington would result in unrecoverable revenue losses and create a state-by-state regulatory patchwork incompatible with its federal obligations.