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Crypto.com Sues Washington Over Prediction Market Threat
Crypto.com's OG exchange sues Washington before state enforcement, arguing CFTC jurisdiction overrides gambling laws. The complaint cites Kalshi's Michigan injunction as precedent.
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The Crypto.com-affiliated exchange behind OG has sued Washington officials before the state takes enforcement action against its prediction markets. The complaint argues that federal commodities law protects OG from state gambling rules and cites Washington’s successful injunction against Kalshi as an imminent threat.
North American Derivatives Exchange Inc., which does business as OG Prediction Markets and Crypto.com | Derivatives North America, filed a federal lawsuit Wednesday seeking to prevent Washington officials from applying state gambling laws to its event contracts. The CFTC-regulated exchange named Attorney General Nick Brown and members of the Washington State Gambling Commission as defendants in the Western District of Washington.
OG is the standalone prediction-market platform launched by Crypto.com on Feb. 3. The platform offers sports, political, financial, cultural and entertainment contracts through the exchange Crypto.com markets as Crypto.com | Derivatives North America, an affiliate registered with the Commodity Futures Trading Commission as a designated contract market and derivatives clearing organization.
The lawsuit does not follow a cease-and-desist order or enforcement case against OG. Instead, the exchange says Washington’s public position and its recent injunction against Kalshi create a “concrete and imminent threat” that officials will target OG next. Washington has maintained since December 2025 that offering or participating in event-contract markets is unauthorized within the state.
OG asks the federal court to declare Washington’s gambling laws unconstitutional and preempted as applied to its exchange. It also seeks a permanent injunction barring Brown and gambling commissioners from enforcing wagering laws against OG. The complaint does not show that the company has already obtained temporary or preliminary protection.
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. OG says withdrawing from Washington would produce unrecoverable revenue losses, weaken its position against competing exchanges and create a state-by-state regulatory patchwork incompatible with its federal obligations.