Crypto Platforms Seek Federal Preemption for Sports-Event Contracts

Robinhood and Crypto.com have filed separate petitions with the Supreme Court to review their losses in the Ninth Circuit Court of Appeals against Nevada. The filings ask the court to decide whether the Commodity Exchange Act preempts state regulation of sports-event contracts traded on a CFTC-registered designated contract market.

The petitions argue that the Commodity Exchange Act preempts state laws and regulations, and that Congress intended for the CFTC to have exclusive oversight of such contracts. This would mean that the CFTC, rather than individual states, would be responsible for regulating sports-event contracts.

The filings also highlight the potential economic impacts of these contracts, including the billions of dollars spent on sports entertainment each year.