USCA4 Appeal: 25-1892
Doc: 16
Filed: 10/15/2025
Pg: 32 of 97
officials “of any State” may sue over “any act or practice constituting a
violation” of the CEA or its regulations, but , consistent with the exclusive-
jurisdiction provision, only against parties “ other than a [designated] contract market .” Id. § 13a-2(1). II. F ACTUAL B ACKGROUND In 2020, the CFTC certified Kalshi as a DCM. See KalshiEX LLC v. CFTC, No. 23-cv-3257, 2024 WL 4164694, at *4 (D.D.C. Sept. 12, 2024).
Since then, Kalshi has been fully regulated under federal law alongside
entities like the Chicago Mercantile Exchange and the Intercontinental
Exchange.
Kalshi offers many kinds of event contracts related to climate,
technology, health, popular culture, and economics. For example, Kalshi
allows users to trade on who will win the New York City mayoral race,
whether India will meet its 2030 climate goals, whether 2025 will be the
hottest year ever recorded, and what the top movie on Netflix will be next
week. These contracts allow customers to hedge and trade based on
financially significant events. Because prices are driven by market forces,
these contracts have significant predictive value. 1
1 Kelly Cloonan, Betting markets nailed Trump ’ s decisive win — and it ’ s a good reminder they can be more accurate than polls , Bus. Insider (Nov. 9, 2024), https://perma.cc/5W7W-S76X.
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