2:25-cv-575-APG-BNW MOTION HEARING - ROUGH DRAFT - DO NOT CITE!!!
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in Kalshi's perspective, would not have independent consequences pursuant to Federal law and, therefore, would not properly be the basis for a swap. And I want to step back and make sure that Your Honor understands our principle point, which is, the CFTC, of course, has authority to review all of these contracts, and it is the authority of the -- the CFTC could look at these contracts and say, you know, we don't think that they properly qualify as swaps because we don't think that sporting events have economic consequences, or any number of other reasons. And that's the job that Congress gave to the CFTC, not to 50 individual States and the District of Columbia. So our principle point is, there's a comprehensive regulatory scheme that Congress set up that allows the CFTC to both designate Kalshi and others as a contract market -- THE COURT: I get all that.
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MR. HAVEMANN: -- and to exercise back-end review. THE COURT: I get all that, believe me, but I want
to focus in on swaps because what you're saying just now is that the CFTC can determine whether it's a swap, but you've just, I thought, described that Kalshi decides it's a swap or not because you're not taking wagers, contracts, on the coin flip because you think it's not a swap. Somebody else might think it is a swap. And if I'm looking at the definition of a swap, in a
UNITED STATES DISTRICT COURT Judy K. Moore, RMR, CRR
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