USCA4 Appeal: 25-1892
Doc: 16
Filed: 10/15/2025
Pg: 3 of 97
TABLE OF CONTENTS INTRODUCTION ...........................................................................................1 STATEMENT OF JURISDICTION................................................................ 4 STATEMENT OF THE ISSUE PRESENTED ................................................ 4 STATEMENT OF THE CASE ........................................................................ 4 I. Legal Background ................................................................................ 4 A. States Initially Regulate Futures Trading As Gambling .................................................................................... 4 B. Congress Passes The CEA And Grants The CFTC Exclusive Jurisdiction Over Trading On DCMs.......................... 6 C. CEA Amendments Underscore The CFTC’s Exclusive Jurisdiction................................................................. 8 D. Congress Broadens The CEA To Encompass Event Contracts .................................................................................. 10 E. Congress Sets Forth A Comprehensive Scheme For Regulating Derivatives Trading.................................................14 II. Factual Background ............................................................................17 III. Procedural History..............................................................................19 SUMMARY OF ARGUMENT .......................................................................21 STANDARD OF REVIEW ........................................................................... 24 ARGUMENT................................................................................................ 24 I. The CEA Preempts Maryland’s Gambling Laws As Applied to Kalshi ............................................................................................. 24 A. Maryland’s Gambling Laws Are Field Preempted As Applied To Kalshi ..................................................................... 25 B. Maryland’s Gambling Laws Are Conflict Preempted As Applied To Kalshi ................................................................ 35
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