Case 2:25-cv-00575-APG-BNW Document 45 Filed 04/09/25 Page 10 of 17
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Under the Supremacy Clause, “state laws that conflict with federal law are without effect,” meaning they are preempted by federal law. Altria Grp., Inc. v. Good , 555 U.S. 70, 76 (2008) (simplified). The “ultimate touchstone” in a preemption analysis is congressional purpose. Id. (quotation omitted). “Congress may indicate pre-emptive intent through a statute’s express language or through its structure and purpose.” Id. Absent an express preemption clause, federal law may preempt state law where Congress has occupied the field or where state laws conflict with federal law. Field preemption occurs when it “can be inferred from a framework of regulation so pervasive that Congress left no room for the States to supplement it or where there is a federal interest so dominant that the federal system will be assumed to preclude enforcement of state laws on the same subject.” Arizona v. United States , 567 U.S. 387, 399 (2012) (simplified). Conflict preemption occurs when “compliance with both federal and state regulations is a physical impossibility,” or “where the challenged state law stands as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress.” Id. (quotation omitted). I begin with the “plain meaning of [the CEA’s] language.” United States v. Lillard , 935 F.3d 827, 833 (9th Cir. 2019). Title 7 U.S.C. § 2(a)(1)(A) provides: The Commission [CFTC] shall have exclusive jurisdiction, except to the extent otherwise provided in the Wall Street Transparency and Accountability Act of 2010 (including an amendment made by that Act) and subparagraphs (C), (D), and (I) of this paragraph and subsections (c) and (f), with respect to accounts, agreements (including any transaction which is of the character of, or is commonly known to the trade as, an “option”, “privilege”, “indemnity”, “bid”, “offer”, “put”, “call”, “advance guaranty”, or “decline guaranty”), and transactions involving swaps or contracts of sale of a commodity for future delivery (including significant price discovery contracts), traded or executed on a contract market designated pursuant to section 7 of this title or a swap execution facility pursuant to section 7b-3 of this title or any other board of trade, exchange, or market, and transactions subject to regulation by the Commission pursuant to section 23 of this title. Except as hereinabove provided, nothing contained in this section shall (I) supersede or limit the jurisdiction at any time conferred on the
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