Crypto.com’s North American derivatives arm has filed a lawsuit against the Nevada Gaming Control Board (NGCB), challenging its decision to block the exchange from offering sports event derivative contracts to Nevada residents.
https://t.co/8EZ0BsZmNo sues Nevada gaming body over block on sports event contracts #Norque #NOQ #Bitcoin #ETH #AI #Blockchain #Blockchain #Law #Policies #Regulation #Crypto
— NORQUE-NOQ (@NorqueNoq) June 5, 2025
The case argues that the NGCB overstepped its authority by treating these contracts as gambling rather than financial products regulated at the federal level.
Crypto.com reportedly maintains that its sports event contracts are regulated by the Commodity Futures Trading Commission (CFTC) under the Commodity Exchange Act. The exchange claims the CFTC has exclusive jurisdiction over these products and that state regulators cannot interfere. The complaint follows a cease-and-desist letter sent by the NGCB on May 20, which threatened civil and criminal penalties if Crypto.com did not halt its offerings.
The lawsuit highlights federal court rulings regarding KalshiEX, establishing that the Commodity Exchange Act preempts state law, allowing the CFTC to regulate event contracts, including those linked to sports. Crypto.com contends that adhering to Nevada’s requirements, like geo-fencing users, would conflict with federal regulations mandating impartial access to federally regulated markets.
A spokesperson for Crypto.com expressed confidence in the legality of their events contracts and stated that the CFTC should regulate them for market integrity and product availability in all states. This legal issue arises as the CFTC investigates Super Bowl-related derivatives contracts from Crypto.com and Kalshi. In March, Kalshi also filed a lawsuit against the NGCB and the New Jersey Division of Gaming Enforcement following the issuance of cease-and-desist orders.
Notably, Trump Media & Technology Group, the parent company of Truth Social, is partnering with Crypto.com and Yorkville America Digital to develop “Made in America” exchange-traded funds (ETFs). These funds will combine traditional financial instruments and digital assets, with a planned launch in late 2025, pending approval. Crypto.com’s broker-dealer will handle distribution, while Trump Media will utilize some of its cash reserves to support the initiative, which aligns with its financial technology goals.
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