Crypto.com Subsidiary Sues Washington Over Event Contract Regulation

Crypto.com's subsidiary North American Derivatives Exchange (NADEX) has filed a federal lawsuit against Washington's attorney general and members of the state's Gambling Commission.

The complaint, filed on July 22 in the US District Court for the Western District of Washington, asserts that Washington lacks authority to regulate OG's event contracts.

OG is the second CFTC-registered prediction market operator to sue Washington over the threat of enforcement. It claims that state gambling laws are superseded by federal law and that the Commodity Exchange Act gives the CFTC exclusive jurisdiction over derivatives trading.

The lawsuit follows a preliminary injunction issued against Kalshi, stopping it from offering sports bets in the state. The filing suggests this creates an imminent threat of enforcement that would cause the company irreparable harm.