Thomas Daniels
Crypto.com, via its derivatives affiliate North American Derivatives Exchange Inc. (Nadex), has filed a federal lawsuit against the Nevada Gaming Control Board (NGCB), challenging the state’s authority to restrict the trading of sports event-based derivative contracts.
Filed on June 3 in a Nevada federal court, the complaint asserts that the NGCB acted beyond its jurisdiction by issuing a cease-and-desist order on May 20. The regulator allegedly misconstrued these financial instruments as illegal wagers under state gaming laws.
Crypto.com maintains that the Commodity Exchange Act grants exclusive oversight of such contracts to the Commodity Futures Trading Commission (CFTC). The firm emphasized that its operations are in full compliance with federal law and that state-level intervention constitutes a violation of regulatory boundaries.
The lawsuit draws upon federal court rulings in recent cases involving KalshiEX, a federally registered predictions market, where courts in both Nevada and New Jersey concluded that state gaming authorities lacked jurisdiction over CFTC-regulated event contracts.
Crypto.com further claims that complying with Nevada’s requirements—such as restricting access through geo-fencing—would directly conflict with CFTC mandates promoting impartial and nationwide market access.
The company is seeking a permanent injunction to bar Nevada from enforcing its gaming statutes against its operations and a declaratory judgment affirming that federal law preempts state regulation in this domain.
The case highlights a growing legal battleground as digital asset platforms continue to test the boundaries of federal and state oversight over financial products linked to sports and other events.
