2026 Membership Book FINAL

Case: 25-1922 Document: 83 Page: 22 Date Filed: 09/24/2025

Page 21

1 of a futures market is preempted. So whether you think

2 about that in terms of conflict preemption or whether you

3 think about it in terms of field preemption, we think that

4 you sort of get to the same result, and there are a bunch

5 of specific respects in which we think that there is a

6 conflict that we'd be happy to go into.

7

Just -- I mean, I think that my colleague noted at the

8 end of his argument that all Kalshi needs to do is get a

9 license in New Jersey. I want to be very clear that it would

10 be impossible for Kalshi to get license in New Jersey, because

11 one of the things that New Jersey requires for people to get a

12 license is to accept what they call bets. So if we're in a

13 world where we're subject to state regulation, if we're

14 offering bets, then we have to accept bets only from people in

15 the State of New Jersey.

16

And how is a nationwide exchange subject to impartial

17 access requirements imposed by the CFTC, upon which our CFTC

18 designation depends. How could we accept bets only from people

19 within New Jersey? And again, it's not just New Jersey. So if

20 New Jersey is right about whether their state licensing regime

21 can apply here, then you have 49 other states and the District

22 of Columbia that can impose overlapping, conflicting, redundant

23 requirements on a DCM, and if you look to what Congress did in

24 1974, this is exactly the result that Congress wanted to avoid

25 when it subjected these exchanges to the exclusive jurisdiction

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