Case: 25-7187, 02/17/2026, DktEntry: 37.2, Page 15 of 41
continues to do so) over time, the fundamental regulatory structure governing futures markets has remained consistent. Today there are 24 exchanges (DCMs) in the United States, including North American Derivatives Exchange d/b/a Crypto.com. 1 II. The Development of Federal Regulation of U.S. Futures and Swaps Markets. A. The Origins of Federal Oversight of Derivatives Regulation. By the mid-nineteenth century, exchanges in major commodity trading hubs like New York and Chicago had organized trading to facilitate price discovery (information exchange), risk management (hedging), and speculation. 2 But there was tension between state regulation of gambling and the growth of futures markets. States and courts often failed to distinguish between futures trading and “gambling” or “wagering,” with many states even prohibiting futures trading as a 1 See CFTC, Designated Contracts Markets (DCMs), https://www.cftc.gov/IndustryOversight/IndustryFilings/TradingOrganizations?Stat us=Designated&Date_From=&Date_To=&Show_All=1 (last visited February 8, 2026). 2 See CFTC , History of the CFTC, https://www.cftc.gov/About/HistoryoftheCFTC/history_precftc.html (last visited February 8, 2026); see also Regulating Transactions on Grain-Future Exchanges , S. Rep. No. 67-871, at 3 (1922): “Transactions in grain futures are utilized by the public for speculation and by the grain trade for the purpose of eliminating or reducing, as far as practicable, the hazards in the merchandising of grain and its products and by-products due to price fluctuations. Public speculation helps to carry the risk for the producers, dealers, and millers who wish to hedge their cash grain transactions.”
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