Case 2:25-cv-00978-APG-BNW Document 105 Filed 10/14/25 Page 21 of 27
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that the CFTC has exclusive jurisdiction over its event contracts as swaps on a DCM. Crypto is not likely to prevail on its argument that the CFTC has exclusive jurisdiction over Crypto’s event contracts, so I deny its motions for judgment on the pleadings and for a preliminary injunction. Because Crypto must show that all four Winter factors support granting an injunction, I need not address the remaining factors. But given my ruling that Crypto has not shown it is likely to succeed, the analysis of those factors changes from what I determined in Hendrick . Allowing Crypto to offer sports wagers guised as swaps on its exchange unfettered by state regulation imposes substantial hardships on the defendants, who are statutorily charged with the “dut[y] to preserve public confidence and trust in licensed gaming.” State Gaming Control Bd. v. Breen , 661 P.2d 1309, 1310 (Nev. 1983) (citing Nev. Rev. Stat. § 463.0129(1)(c)). And the public has an interest in ensuring that unlicensed sports wagering does not occur on CFTC- designated exchanges, as that would be contrary to the CEA, congressional intent, CFTC regulations, and Nevada law. III. I GRANT IN PART THE MOTION TO STRIKE, WITH LEAVE TO AMEND. Crypto moves to strike the defendants’ affirmative defenses for various reasons, including that they are denials of Crypto’s allegations, not affirmative defenses; they either do not apply or fail as a matter of law; or they lack factual support. Under Rule 12(f), I “may strike from a pleading an insufficient defense or any redundant, immaterial, impertinent, or scandalous matter.” Fed. R. Civ. P. 12(f); see also Quintara Biosciences, Inc. v. Ruifeng Biztech, Inc. , 149 F.4th 1081, 1089 (9th Cir. 2025). The purpose of a Rule 12(f) motion to strike “is to avoid the expenditure of time and money that must arise from litigating spurious issues.” Sidney-Vinstein v. A.H. Robins Co. , 697 F.2d 880, 885 (9th Cir.
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