Case 2:25-cv-00978-APG-BNW Document 105 Filed 10/14/25 Page 10 of 27
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authorities under the laws of the United States or of any State, or (II) restrict the Securities and Exchange Commission and such other authorities from carrying out their duties and responsibilities in accordance with such laws. Nothing in this section shall supersede or limit the jurisdiction conferred on courts of the United States or any State. As I stated in Hendrick , “Section 2’s plain and unambiguous language grants the CFTC exclusive jurisdiction over accounts, agreements, and transactions involving swaps or contracts of sale of a commodity for future delivery that are traded or executed on exchanges that the CFTC has designated under section 7.” 2025 WL 1073495, at *5 (internal footnotes omitted). “The second sentence in section 2—which states that nothing in section 2 supersedes ‘other regulatory authorities’ under state law—does not give states regulatory authority over swaps traded on CFTC-designated exchanges because that language is limited by the phrase ‘[e]xcept as hereinabove provided.’” Id. “Section 2’s first sentence supersedes the SEC and state regulatory authorities’ jurisdiction for transactions involving swaps on a CFTC-designated exchange.” Id. “The remainder of the second sentence preserves the SEC and states’ regulatory authority over exchanges or transactions that are not covered by the CFTC’s exclusive jurisdiction.” Id. “For example, [state regulators] could pursue an entity that offered sports event contracts that were not listed on a CFTC-designated exchange.” Id. But to fall within the CFTC’s exclusive jurisdiction under 7 U.S.C. § 2(a)(1)(A), the listed item must be a “swap[] or contract[] of sale of a commodity for future delivery . . . traded or executed on” a DCM. Crypto does not assert that the event contracts at issue are contracts for the sale of a commodity for future delivery. Rather, Crypto contends that the event contracts qualify as swaps. See ECF Nos. 1 at 3; 15-3 at 2, 5. Preliminarily, I have authority to interpret the CEA, including its definition of “swap.” Crypto argues that the legislative history shows that Congress intended the CFTC, not courts or
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