Crypto.com Joins Robinhood in Petitioning SCOTUS Over Sports Event Contract Regulations

Crypto.com has joined Robinhood in petitioning the U.S. Supreme Court to evaluate sports event contract regulations under the Commodity Exchange Act (CEA). The prediction market company submitted a writ of certiorari last week, asking the court to determine whether states can regulate sports event contracts through their own gambling laws.

The Ninth Circuit's recent ruling affirmed District Judge Andrew Gordon's decision to dissolve an approved Kalshi injunction and allow the Nevada Gaming Control Board to uphold its state gambling laws against sports event contracts. Crypto.com argues that the CEA preempts state regulation of sports-event contracts traded on a Designated Contract Market (DCM).

A split exists at the circuit court level, as the Ninth Circuit recently ruled in favor of Nevada, while the U.S. Third Circuit Court of Appeals ruled New Jersey could not regulate Kalshi's sports event contract offerings under the CEA.