Case 2:25-cv-00978-APG-BNW Document 105 Filed 10/14/25 Page 16 of 27
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of a live sporting event.”); 15-3 at 3 (Crypto self-certifying that the event contracts at issue relate to the “impacts of the outcome of an event in the live presentation industry”), 5 (stating that the payment criterion “is determined by the outcome of the Industry Event”). According to Crypto’s self-certification, it is not offering event contracts on, for example, whether the Kentucky Derby (the event) will take place (occur, not occur, or extent of occurrence) but on who will win it (the outcome). Crypto’s self-certified contracts therefore are not “swaps” within the CFTC’s exclusive jurisdiction. Crypto’s proposed reading of the statute knows no limiting principle because anything could be defined as an event. Although Crypto argues that Congress intentionally defined swaps broadly, the words Congress chose must have content. If everything can be defined as an event, the statutory words either have no meaning or have such a broad meaning that they would render superfluous other portions of the CEA’s definition of a swap. See Corley v. United States , 556 U.S. 303, 314 (2009) (A “statute should be construed so that effect is given to all its provisions, so that no part will be inoperative or superfluous, void or insignificant.” (simplified)). For example, section 1a(47)(iii) includes credit default swaps within the definition of a swap. A “credit default swap is a bilateral financial contract in which a protection buyer makes periodic payments to the protection seller, in return for a contingent payment if a predefined credit event occurs in the reference credit.” Aon Fin. Prods., Inc. v. Societe Generale , 476 F.3d 90, 96 (2d Cir. 2007) (quotation omitted). In other words, a credit default swap is a contract that provides for payment dependent on the occurrence, nonoccurrence, or the extent of the occurrence of an event (a default) associated with a potential financial, economic, or commercial consequence (credit). Because a credit default swap could fit the definition of a swap in 7 U.S.C.
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