Crypto.com sues Nevada regulator over block on sport event contracts
Crypto.com’s derivatives arm has filed a lawsuit against the Nevada Gaming Control Board (NGCB) for blocking the trading of sporting event contracts. The lawsuit, initiated on June 3, claims the NGCB improperly asserted jurisdiction over contracts that should fall under federal regulation. Crypto.com argues that the Commodity Exchange Act grants exclusive authority to the Commodity Futures Trading Commission (CFTC) over these financial instruments, asserting that state gaming laws do not apply. The complaint cites recent federal court rulings that support federal preemption over state regulations in similar cases. The NGCB had issued a cease-and-desist letter on May 20, threatening penalties unless Crypto.com ceased offering these contracts to Nevada residents. The firm contends that compliance with state demands would violate federal laws requiring impartial access. Crypto.com seeks a permanent injunction against the enforcement of Nevada's gaming laws and a declaratory judgment affirming federal preemption.
