Case 1:25-cv-14723 Document 10-1 Filed 08/19/25 Page 29 of 34 PageID: 101
FCMs such as Robinhood within the extensive set of federal regulatory requirements and CFTC
oversight established to manage commodity derivatives trading. The “comprehensive regulatory
structure to oversee the volatile and esoteric futures trading complex,” Curran , 456 U.S. at 356
(internal quotation marks omitted), established by Congress includes FCMs that facilitate
purchases and sales of commodities for future delivery and swaps; indeed, this is in part what
defines an FCM, 7 U.S.C. § 1a(28)(A)(i)(I)(aa)(AA), (CC). As noted above, FCMs such as
Robinhood that are registered with the CFTC must comply with a multitude of requirements,
including minimum financial requirements, 17 C.F.R. §§ 1.12, 1.17, reporting requirements, id.
§§ 1.10(b), 1.10(d), 17.00, and disclosure requirements, id. § 1.55. They must also establish and
enforce policies relating to trading standards, risk management, and conflicts of interest. Id.
§§ 1.15, 1.71, 155.3. State regulation of orders on an FCM (when those orders will be executed
on a DCM) would conflict with federal authorization of transactions through FCMs subject to
CFTC jurisdiction. See id. § 1a(28)(A) (CEA expressly envisions FCMs facilitating transactions
in swaps and commodities for future delivery).
In short, the “oversight of futures commission merchants (‘FCMs’)” is an “important
aspect” of the CFTC’s oversight responsibility for futures trading. Prestwick Capital Mgmt.,
Ltd. v. Peregrine Fin. Grp., Inc. , 727 F.3d 646, 650 (7th Cir. 2013). FCMs like Robinhood are
therefore an integral part of the fabric of the CEA’s comprehensive regulatory scheme, and their
activities in facilitating trading on DCMs are equally subject to federal preemption as those of
DCMs like Kalshi.
II. ROBINHOOD WILL SUFFER IRREPARABLE HARM ABSENT IMMEDIATE RELIEF.
“[T]o show irreparable harm a plaintiff must demonstrate potential harm which cannot be
redressed by a legal or an equitable remedy following a trial,” and “[s]uch harm must be likely
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