The Commodity Futures Trading Commission's regulatory proposal targets cryptocurrency exchanges that offer leveraged, margined, or financed retail trading activity

Overview Debates Related claims Topics Sources

Missouri Attorney General Catherine Hanaway gave sports event contract operators 30 days to stop offering sports event contracts in Missouri or obtain a Missouri Gaming Commission license and pay a 10% tax

Missouri Attorney General Catherine Hanaway issued cease-and-desist letters over sports event contracts on September 16 and 17, 2026, to Crypto.com, Novig, Kalshi, Polymarket, Robinhood, and Underdog

Attorney General Catherine Hanaway's office raised minimum-age concerns against five of six targeted prediction platforms that received her cease-and-desist letters, identifying Crypto.com for allowing 18-year-old users while Missouri requires sports bettors to be 21

Missouri officials treat sports event contracts offered by Crypto.com and Novig as unlicensed sports wagering, requiring state licensing with application fees up to $500,000 and a 10% tax on adjusted gross revenue

Approximately $950 million in leveraged crypto positions were liquidated over a 24-hour period ending October 15, 2026, with bullish long positions accounting for roughly 90% of the total, according to CoinGlass

The Commodity Futures Trading Commission's proposal seeks to create a new registration category designated as the 'crypto asset market' under agency jurisdiction

Under the Commodity Futures Trading Commission's proposed framework for a new 'crypto asset market' registration category, basic spot cryptocurrency exchanges may continue operating primarily under state money-transmitter licenses

The Commodity Futures Trading Commission currently lacks statutory authority to enforce mandatory federal registration for spot cryptocurrency exchanges

Crypto.com asked a federal court to bar Missouri from enforcing sports wagering laws against its event contracts after Attorney General Catherine Hanaway issued a cease-and-desist deadline

Market observers are tracking potential responses to the Commodity Futures Trading Commission's proposed 'crypto asset market' oversight framework from major cryptocurrency exchanges including Coinbase and Binance

North American Derivatives Exchange, operating Crypto.com's prediction market, filed a lawsuit against Missouri officials in the Western District of Missouri on October 16, 2026

Novig, through exchange operator Ludlow Exchange LLC, filed a federal lawsuit against Missouri officials in the Eastern District of Missouri on October 16, 2026

The Commodity Futures Trading Commission proposed a regulatory framework allowing United States cryptocurrency exchanges to opt for federal oversight

Crypto.com and Novig argue that their sports event contracts are financial derivative swaps under exclusive CFTC jurisdiction, which preempts Missouri state gambling laws under the Commodity Exchange Act

Missouri Attorney General Catherine Hanaway publicly stated that companies cannot repackage sports bets as event contracts to evade state law

Novig launched its sports-focused, Commodity Futures Trading Commission-regulated prediction market platform on August 4, 2026

Crypto.com stated in its complaint that Attorney General Catherine Hanaway incorrectly addressed her cease-and-desist letter to Foris DAX, Inc. instead of North American Derivatives Exchange

Novig has previously sued state officials in several other states, including Wisconsin

Federal appeals courts have split on whether federal law preempts state gambling laws for sports event contracts, with the 6th and 9th Circuits ruling against Kalshi and the 3rd Circuit ruling for Kalshi

Novig asked the Eastern District of Missouri court for an injunction while the 8th Circuit Court of Appeals hears an appeal on sports event contract preemption in a Kalshi case from Iowa