Case 2:25-cv-00978-APG-BNW Document 42 Filed 08/04/25 Page 2 of 26
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Plaintiff North American Derivatives Exchange, Inc. d/b/a Crypto.com | Derivatives North America (“CDNA”) respectfully moves pursuant to Federal Rule of Civil Procedure 12(c) for the Court to enter judgment on the pleadings, issue a declaration that Nevada laws pertaining to licensing and regulation of gaming are preempted by the Commodity Exchange Act (“CEA”) insofar as they would apply to instruments listed on a designated contract market (“DCM”), and permanently enjoin Defendants from enforcing Nevada gaming law against CDNA with respect to such instruments. Pursuant to the same rule and Federal Rule of Civil Procedure 12(f), CDNA asks the Court to strike Defendants’ unsupported denials and affirmative defenses. This Motion is based on the referenced pleadings and papers filed herein, the following Memorandum of Points and Authorities, and any oral argument the Court may entertain in connection with this Motion. MEMORANDUM OF POINTS AND AUTHORITIES INTRODUCTION This case presents a straightforward pure legal question of federal preemption: whether Nevada’s gaming regulator can enforce Nevada gaming laws against federally regulated derivatives trading on a Commodity Futures Trading Commission (“CFTC”)-designated contract market. The answer is no, as a matter of law. CDNA is a CFTC-regulated DCM that lists for trading in a national derivatives market derivatives products that fall under the exclusive jurisdiction of the CFTC pursuant to the CEA. CDNA has, in accordance with the procedures for listing such products and subject to CFTC oversight, listed for trading event contracts that reference the outcomes of live sports events (“Sports Event Contracts”). Event contracts are a type of derivative product expressly recognized under the CEA and in CFTC regulations. In the CEA, Congress established a national market in derivatives products, regulated at the federal level. It vested the CFTC with authority to authorize and regulate DCMs and with “exclusive jurisdiction” to regulate transactions on them. The CFTC has not disallowed listing of the Sports Event Contracts at issue, and these contracts are therefore lawfully offered for trading in a federally regulated market. Notwithstanding this federal regulatory framework and its applicability to Sports Event Contracts, the Nevada Gaming Control Board (“NGCB”) and its members have asserted state-level
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