April 21, 2025 – Crypto.com | Derivatives North America (CDNA) has today filed suit against the Maryland Lottery and Gaming Control Commission, seeking declaratory and injunctive relief from the State’s unlawful efforts to assume regulatory jurisdiction over federally-regulated derivatives trading activities.
The Maryland Lottery and Gaming Control Commission recently sent a ‘cease-and-desist’ notice to CDNA regarding its Sports Event Trading product. The Sports Event Trading product is offered by CDNA, a CFTC-regulated exchange and designated contract market. The offerings within this product are prediction market event contracts, which are specifically regulated by the CFTC in accordance with the Commodity Exchange Act. This law has been supported as recently as this month by the U.S. District Court for Nevada, which ruled against similar unlawful efforts by the Nevada Gaming Board.
Any state action, including this action by Maryland, pertaining to derivative contracts traded under the jurisdiction of the CFTC is without merit. Ultimately, the Maryland Lottery and Gaming Control Commission has no jurisdiction to regulate or prohibit these sports event contracts and CDNA’s Sports Event Trading product demonstrates full compliance with federal law.
“The law is very clear for derivatives and prediction market event contracts, and we are proud to offer these services through a fully compliant and regulated platform,” said Nick Lundgren, Chief Legal Officer of Crypto.com. “Our decision to sue the Maryland Lottery and Gaming Control Commission is necessary at this time, and we are fully confident that the existing laws will be recognized and upheld in our favor.”
In 2022, Crypto.com acquired the CFTC-registered exchange and clearinghouse, North American Derivatives Exchange, Inc., which does business as Crypto.com | Derivatives North America. In addition to prediction market event contracts, CDNA offers over fifteen digital asset derivatives, as well as derivatives on foreign exchange, equity indices and commodities.
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