{"id":75902,"date":"2026-07-25T09:46:36","date_gmt":"2026-07-25T09:46:36","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/crypto-com-prediction-exchange-seeks-federal-shield-ahead-of-washington-crackdown\/"},"modified":"2026-07-25T09:46:36","modified_gmt":"2026-07-25T09:46:36","slug":"crypto-com-prediction-exchange-seeks-federal-shield-ahead-of-washington-crackdown","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/crypto-com-prediction-exchange-seeks-federal-shield-ahead-of-washington-crackdown\/","title":{"rendered":"Crypto.com Prediction Exchange Seeks Federal Shield Ahead of Washington Crackdown"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">OG seeks a permanent federal injunction against Washington gambling enforcement.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">The exchange says Washington\u2019s July 20 Kalshi injunction creates an imminent threat.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">OG invokes the CFTC\u2019s July 14 order protecting completed Michigan event contracts.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>OG invokes CFTC\u2019s Michigan intervention<\/h2>\n<p>North American Derivatives Exchange Inc., which does business as OG Prediction Markets and Crypto.com | Derivatives North America, <a href=\"https:\/\/resources.sbcamericas.com\/sbcamericas\/2026\/07\/NADEX-vs-Washington.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">filed a federal lawsuit<\/a> 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.<\/p>\n<p>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 <a href=\"https:\/\/crypto.com\/us\/company-news\/cryptocom-launches-og-a-new-prediction-market-experience\" target=\"_blank\" rel=\"noopener noreferrer\">markets as<\/a> Crypto.com | Derivatives North America, an affiliate registered with the Commodity Futures Trading Commission as a designated contract market and derivatives clearing organization.<\/p>\n<p>The lawsuit does not follow a cease-and-desist order or enforcement case against OG. Instead, the exchange says Washington\u2019s public position and its recent <a href=\"https:\/\/news.bitcoin.com\/washington-judge-rejects-kalshis-federal-defense-grants-state-injunction\/\">injunction against Kalshi<\/a> create a \u201cconcrete and imminent threat\u201d that officials will target OG next. Washington has maintained since <a href=\"https:\/\/wsgc.wa.gov\/news\/2025\/prediction-markets\" target=\"_blank\" rel=\"noopener noreferrer\">December 2025<\/a> that offering or participating in event-contract markets is unauthorized within the state.<\/p>\n<p>OG asks the federal court to declare Washington\u2019s 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, but the complaint does not show that the company has already obtained temporary or preliminary protection.<\/p>\n<p>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.<\/p>\n<p>Its complaint relies heavily on the CFTC\u2019s July 14 intervention in Michigan. The agency <a href=\"https:\/\/news.bitcoin.com\/cftc-blocks-kalshi-from-cancelling-michigan-sports-trades-ordered-voided\/\">blocked Kalshi from cancelling<\/a> previously executed sports contracts after a state court ordered them voided and refunded, directing the exchange to fulfill the trades normally. The CFTC said forced unwinding could distort prices and weaken confidence that completed derivatives transactions will remain enforceable.<\/p>\n<p>OG also advances a commercial defense of sports contracts, arguing that broadcasters, merchandise retailers, hospitality businesses, restaurants and fantasy operators may use them to hedge revenue tied to sporting outcomes. The complaint offers hypothetical use cases, however, and does not identify businesses currently using OG contracts for those purposes.<\/p>\n<p>The exchange previously <a href=\"https:\/\/www.forbes.com\/sites\/jasonbrett\/2026\/02\/24\/cftc-backs-cryptocom-in-nevada-prediction-markets-fight-scotus-next\/\" target=\"_blank\" rel=\"noopener noreferrer\">sued Nevada regulators<\/a> in September 2025 after receiving a cease-and-desist, and a federal judge denied its preliminary injunction the following month, prompting Crypto.com to pause Nevada sports contracts and appeal to the Ninth Circuit. In June, it <a href=\"https:\/\/www.gamblinginsider.com\/news\/166921\/prediction-market-lawsuits-new-york-kentucky-nevada-new-mexico\" target=\"_blank\" rel=\"noopener noreferrer\">filed a near-identical complaint<\/a> against New York Attorney General Letitia James and the New York State Gaming Commission. OG is also the second operator to sue Washington on imminent-threat grounds, after Robinhood.<\/p>\n<p>Washington\u2019s state court reached the opposite conclusion in Kalshi\u2019s case, finding that the Commodity Exchange Act does not prevent states from defining and enforcing illegal gambling. Federal courts remain divided: the Third Circuit <a href=\"https:\/\/news.bitcoin.com\/new-jersey-loses-bid-to-shut-down-kalshi-sports-contracts-after-federal-appeal\/\">shielded Kalshi in New Jersey<\/a>, while courts in several other states have allowed local restrictions to proceed. Gambling attorney Daniel Wallach <a href=\"https:\/\/crypto.news\/kalshi-sports-prediction-markets-blocked-in-washington-court-ruling\/\" target=\"_blank\" rel=\"noopener noreferrer\">counts states winning<\/a> 19 of 23 decisions on preliminary injunctions and restraining orders in prediction-market cases.<\/p>\n<p>OG\u2019s lawsuit attempts to secure federal protection before Washington repeats its Kalshi enforcement strategy. The filing does not resolve whether its contracts are derivatives or gambling, but it extends the federal-state jurisdictional fight to Crypto.com\u2019s expanding prediction-market business.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/crypto-com-prediction-exchange-seeks-federal-shield-ahead-of-washington-crackdown\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways OG seeks a permanent federal injunction against Washington gambling enforcement. The exchange says Washington\u2019s July 20 Kalshi injunction creates an imminent threat. OG invokes the CFTC\u2019s July 14 order protecting completed Michigan event contracts. OG invokes CFTC\u2019s Michigan intervention North American Derivatives Exchange Inc., which does [&hellip;]<\/p>\n","protected":false},"author":3947362403,"featured_media":75903,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/75902"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362403"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=75902"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/75902\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/75903"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=75902"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=75902"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=75902"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}