Crypto.com Exchange and Novig Sue Missouri Over Contracts

North American Derivatives Exchange and Novig filed separate federal lawsuits against Missouri on October 16, seeking to block state enforcement of gambling laws against their sports event contracts. The cases challenge cease-and-desist letters sent to prediction-market operators by Missouri Attorney General Catherine Hanaway in September. North American Derivatives Exchange, which operates the exchange behind Crypto.com’s OG prediction-market platform, brought its case in the U.S. District Court for the Western District of Missouri. It is seeking a declaratory judgment and a permanent injunction. The exchange argues that the federal Commodity Exchange Act gives the Commodity Futures Trading Commission exclusive jurisdiction over its contracts, preventing Missouri from regulating them as sports wagers. The complaint also says Hanaway’s letter was addressed to Foris DAX, Inc., rather than North American Derivatives Exchange. The exchange argues that obtaining a state sports-betting license is not a practical option because Missouri has only two direct mobile wagering licenses and both have been awarded. These are arguments made in its filing, not court findings. Novig filed in...