Crypto.com has named Justin Wales as the company’s new Chief Legal Officer (CLO) after former CLO of Crypto.com and CEO of OG.com, Nick Lundgren, announced his departure.
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Crypto.com sues Nevada regulator over sports contracts ban
Crypto.com is taking legal action against the Nevada Gaming Control Board (NGCB), claiming the state is overstepping its authority by blocking its sports-related financial contracts.
Filed on June 3, the lawsuit says that Crypto.com’s U.S. derivatives arm, the North American Derivatives Exchange, is being wrongly treated like a gambling platform. The NGCB sent a cease-and-desist letter in May, warning of penalties if the exchange didn’t stop offering sports event contracts to Nevada residents.
However, Crypto.com argues these are not bets, but federally regulated financial products. It says the Commodity Futures Trading Commission (CFTC), not state gaming boards, has sole authority over such markets under the Commodity Exchange Act.
The company pointed to previous federal court rulings involving KalshiEX, a similar platform, where judges said state gaming rules cannot interfere with federally approved derivatives trading. Crypto.com insists that trying to comply with Nevada’s demand, like blocking access based on user location, would go against federal rules, which require open and fair access for everyone.
The lawsuit asks the court to permanently stop Nevada from applying its gaming laws to federally regulated sports contracts and to confirm that federal law overrides state restrictions.
This isn’t the first case of this kind. Earlier this year, the CFTC reviewed Crypto.com’s Super Bowl contracts, and Kalshi sued regulators in Nevada and New Jersey over similar issues.
Crypto.com says it stands by the legality of its contracts and believes the CFTC is the rightful regulator for these types of products.
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