A major crypto exchange has filed lawsuits against three U.S. states over their approaches to regulating prediction markets. The legal action highlights the ongoing tension between the crypto industry and state-level regulators, as exchanges push back against what they view as overly restrictive rules. This case underscores the broader struggle to establish clear regulatory frameworks for prediction market platforms, with states imposing different standards that create compliance challenges across jurisdictions. The outcome could reshape how states oversee digital prediction services moving forward.