Crypto.com’s prediction market platform OG is taking legal action to stop Washington state from imposing gambling laws on its event contracts. The exchange filed a federal lawsuit to block state regulators before any enforcement begins, arguing federal law under the Commodity Futures Trading Commission (CFTC) shields it from state gambling rules.
OG's Legal Challenge Against Washington
North American Derivatives Exchange Inc., operating as OG Prediction Markets and affiliated with Crypto.com Derivatives North America, filed the suit in the Western District of Washington on Wednesday. The defendants include Washington Attorney General Nick Brown and members of the Washington State Gambling Commission. OG claims Washington’s recent injunction against Kalshi, announced on July 20, puts OG at immediate risk of similar action.
The exchange emphasizes that unlike Kalshi, which faced a cease-and-desist order, OG is preemptively seeking a permanent injunction to declare Washington’s gambling laws unconstitutional as they apply to its federally regulated derivatives platform. Launched on February 3, OG offers contracts on sports, politics, finance, and culture through Crypto.com’s designated contract market registered with the CFTC.
According to OG, federal law grants the CFTC exclusive jurisdiction over derivatives trading on designated contract markets nationwide, preventing state-level restrictions from interfering with its operations. The company warns that forcing it to withdraw from Washington will cause irreversible revenue losses, damage its competitive position, and create conflicting state-by-state regulations that undermine federal regulatory cohesion.
The lawsuit also references the CFTC’s July 14 ruling that blocked Kalshi from voiding previously completed sports-event contracts in Michigan, highlighting federal protection offered to similar platforms.
