Robinhood counsel Lisa Blatt asks court to pause for CFTC event contract rule
Robinhood lead counsel Lisa Blatt filed a petition asking a court to delay ruling on ongoing litigation, arguing the Commodity Futures Trading Commission's final rule on event contracts is imminent. The move suggests Robinhood aims to avoid an adverse judicial decision by awaiting the agency's upcoming regulatory framework. Robinhood Derivatives, LLC, the entity offering the contracts, is a CFTC-registered futures commission merchant and swap firm.
Blatt's delay tactic reveals Robinhood's bet that the CFTC's pending rule will reshape the legal landscape in its favor. A final rule could tighten preemption language or clarify that CFTC-registered platforms sit outside state gambling jurisdiction. That would blunt the Nevada, Connecticut, and Baltimore enforcement actions already forcing geofences on Kalshi. Robinhood has the balance sheet to sustain multi-front litigation longer than smaller rivals, so every month of delay widens its structural advantage.
If the court grants the stay and the CFTC delivers a platform-friendly rule, competitors still fighting state-by-state battles face a steeper climb. The risk is the rule arrives narrower than hoped, leaving Robinhood with no new shield and a colder judicial record. Either outcome sets the template for how quickly the rest of the field must file parallel petitions or accept state-level fragmentation.
Robinhood now has multiple parallel preemption fights running, with Blatt's petition joining the Supreme Court cert petition on the same core question of whether CFTC registration blocks state gambling enforcement.