On June 3, 2025, the derivatives division of Crypto.com, North American Derivatives Exchange, Inc., initiated legal action against the Nevada Gaming Control Board (NGCB) in Nevada’s federal court. The lawsuit contests the NGCB’s authority to restrict Crypto.com from offering sports-related derivative contracts, asserting that such contracts fall under federal jurisdiction. This dispute highlights ongoing tensions between state regulatory bodies and federally regulated financial platforms in the evolving digital asset space.
Background of the Dispute
Crypto.com operates as a designated contract market (DCM) under the oversight of the U.S. Commodity Futures Trading Commission (CFTC). The exchange argues that the NGCB lacks the legal authority to regulate its sports-related derivative contracts, which are approved by the CFTC. The lawsuit claims that the NGCB’s actions to block these contracts infringe on Crypto.com’s federally granted rights to operate its derivatives market. This challenge follows similar legal precedents, including recent federal injunctions involving KalshiEX, where courts ruled that state gaming boards, including those in Nevada and New Jersey, cannot enforce gaming laws on federally regulated event contracts.
Legal Objectives and Implications
Through the lawsuit, Crypto.com seeks a permanent injunction to prevent the NGCB from applying Nevada’s gaming regulations to its derivatives business. The outcome of this case could set a significant precedent for the regulatory landscape surrounding digital asset derivatives and event-based contracts. A ruling in Crypto.com’s favor would reinforce the primacy of federal oversight in such markets, potentially limiting the reach of state gaming authorities over similar platforms. As the case progresses, it may influence how other cryptocurrency exchanges navigate state and federal regulatory frameworks.
Source: https://cointelegraph.com/news/cryptocom-sues-nevada-gaming-sport-event-contract-blocks
