Washington and Crypto.com pause litigation, new federal bill targets wildfire markets, today in prediction market news LIVE

Crypto.com and Washington state officials have requested a temporary halt in their legal dispute over event contracts while the Ninth Circuit considers related appeals. Crypto.com, operating under the name OG, filed the joint request with Washington Attorney General Nicholas W. Brown and officials from the Washington State Gambling Commission on August 18.

The pause would prevent enforcement of certain civil or criminal actions involving Crypto.com's event contracts traded on federally regulated Designated Contract Markets (DCMs). Both sides argue that pursuing the Washington litigation at this time would be a waste of resources while the appeals court deliberates on the same issue.

Crypto.com claims federal regulation under the Commodity Exchange Act supersedes state law for DCMs. The dispute is part of a broader debate over the regulation of prediction markets, with Washington's Gambling Commission ruling them unauthorized in December 2025 and a coalition of 44 state AGs urging the Commodity Futures Trading Commission to review a proposed rule. The 18-month pause would remain in effect until further notice unless modified by a court order.