Case: 25-7187, 02/17/2026, DktEntry: 37.2, Page 13 of 41
Restraining Order at 2, 7 Nevada, et al. v. Coinbase Financial Markets, Inc ., No. 26-OC-0030-1B (Nev. 1st Judic. Dist. Feb. 5, 2026) (emphasis added) (prohibiting Coinbase “from offering or facilitating the offering of event contract[s] in Nevada”). Unable to articulate any limiting principle to their theory, they have upended decades of well-settled and Congressionally-mandated exclusive jurisdiction across the full spectrum of event contracts. While subsequent litigation may require resolution of complicated follow-on questions, this case presents two narrow, yet exceptionally important, questions: (1) are Appellant’s CFTC exchange-traded event contracts swaps, and (2) may such swaps also be regulated, or prohibited, under state law, thereby displacing the CEA’s express preemption of state and other federal laws or rules? The CFTC submits this brief to assist the Court in resolving these fundamental issues. BACKGROUND I. The Commodity Exchange Act Provides the Regulatory Framework for Commodity Derivatives Markets in the United States. The CEA is a federal statute that provides the comprehensive federal framework governing transactions in United States commodity derivatives markets. A derivative is a financial instrument, the value of which depends on ( i.e. , is derived from) the value of some underlying asset, index, or other measure. In general, market participants use derivatives to hedge risks or speculate on commodity price movements. The most common derivatives are “futures
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