Case 1:25-cv-14723 Document 10-1 Filed 08/19/25 Page 28 of 34 PageID: 100
First , Kalshi and Robinhood participate in transactions involving “swaps or contracts of
sale of a commodity for future delivery” traded on a DCM, and these transactions therefore fall
squarely within the statutory grant of exclusive jurisdiction to the CFTC. See 7 U.S.C.
§ 2(a)(1)(A) (granting CFTC “exclusive jurisdiction” over all “accounts, agreements . . . , and
transactions involving swaps or contracts of sale of a commodity for future delivery” that are
“traded or executed on a contract market designated” by the CFTC). Because it is the
transaction on a regulated exchange over which the CFTC has exclusive jurisdiction, see id. , the
CFTC must have jurisdiction over the entire transaction and all participants. This includes
entities like Robinhood that accept orders or otherwise facilitate transactions, as well as entities
like Kalshi that execute transactions. See id. § 1a(28)(A) (CEA expressly envisions FCMs
facilitating transactions in swaps and commodities for future delivery).
If states could regulate some but not all entities relevant to these transactions, such
regulation would infringe on the CFTC’s exclusive jurisdiction and fracture what Congress
intended to be a uniform set of regulations for commodity futures and swaps trading. A state
cannot circumvent the exclusive jurisdiction of the CFTC by enforcing state law against an entity
involved in facilitating a transaction when the state has been enjoined from enforcing state law
against the entity involved in executing that same transaction. Indeed, as the CFTC itself
recently explained to the D.C. Circuit, “due to federal preemption, event contracts never violate
state law when they are traded on a [designated contract market] .” CFTC Brief, KalshiEx LLC
v. U.S. Commodity Futures Trading Comm’n , No. 24-5205, at 27, 2024 WL 4512583 (D.C. Cir.
Oct. 16, 2024) (emphasis added).
Second, the conclusion that preemption applies equally to Robinhood’s facilitation of
these transactions as an FCM is further supported by the fact that Congress explicitly included
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