Crypto.com targets US prediction market with OG as states ramp up enforcement

Crypto.com has launched OG, a standalone prediction market platform for the US market.

The launch marks a strategic step to isolate its event contract business as regulators continue to debate the legal status of such products.

According to the official announcement, OG will operate through Crypto.com Derivatives North America (CDNA), a clearinghouse and designated contract market registered with the Commodity Futures Trading Commission (CFTC). 

At launch, the service is only available in the United States, where Crypto.com says it plans to initially focus.

OG combines trading functionality with consumer-facing features like social engagement tools and a leaderboard, which offers access to a range of CFTC-regulated contracts tied to sports, finance, politics, culture, and entertainment. 

Crypto.com also plans to expand OG’s capabilities to include margin trading of prediction contracts, pending regulatory certification through its federally licensed futures commission merchant.

The company’s co-founder and CEO, Kris Marszalek, said the decision to spin out OG followed what he described as “40x weekly growth” in the firm’s prediction market activity over the past six months. 

Crypto.com had first launched event-based trading in December 2024.

A crowded Market

OG’s launch comes as interest in prediction markets surges.

According to International Banker, total monthly volume grew from under $100 million at the start of 2024 to over $13 billion by the end of 2025. Meanwhile, Industry revenue is projected to reach $10 billion by 2030, Citizens Financial Group estimates.

Several other firms are now targeting the same market.

Over the past months, Coinbase has rolled out its own offering in collaboration with Kalshi, while crypto exchange Bitnomial has received limited regulatory relief to offer similar products. 

Even on-chain trading platform Hyperliquid is testing its Outcome Trading feature, which it says will function as a fully collateralised alternative to perpetual futures.

Legal uncertainty mounts

Despite the federal regulatory approvals some of these firms hold, state-level pushback has become a defining obstacle. 

Connecticut, Massachusetts, Nevada, and Tennessee are among some of the states that have issued cease-and-desist orders or filed lawsuits against platforms including Kalshi, Polymarket, Robinhood, and now Coinbase, citing violations of gambling laws.

On Monday, the Nevada Gaming Control Board sued Coinbase in state court and is looking to block its event-based trading for allegedly operating without a license. A similar injunction was issued against Polymarket in January. 

Connecticut regulators have also taken action against Crypto.com over its earlier sports prediction products, calling them unlicensed online gambling.

As such, the legal status of prediction markets remains unresolved, with industry participants and regulators at odds over whether such contracts are financial instruments or wagers requiring state licensure.

While platforms like Kalshi and OG operate under federal CFTC oversight, states have increasingly argued that event-based contracts, especially those tied to sports or elections, fall under the purview of local gambling authorities.

As a result, a fragmented regulatory environment has taken shape where the same product is being treated as a compliant derivative in one state and an illegal wager in another.

Some platforms have responded with lawsuits of their own.

Coinbase, for example, is suing multiple states as it believes state-level interference undermines national market uniformity and violates federal preemption principles under the Commodity Exchange Act.

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