Coinbase CLO: US court has determined that the Kalshi contract is a CFTC-regulated swap product.

Coinbase Chief Legal Officer paulgrewal.eth stated in an article on the X platform that a US court ruling indicated that ordinary users might perceive Kalshi's product as "similar to, or even indistinguishable from, sports betting." However, the court emphasized that this perception does not alter its legal nature because "a three-hour match, and the Titans winning the match, are both events that occurred," and the related contracts still fall under the "swaps," which are legally subject to the exclusive jurisdiction of the US Commodity Futures Trading Commission (CFTC). paulgrewal.eth believes that this ruling means that even if a product resembles sports betting in form or experience, as long as its structure meets the definition of a swap and is traded on a regulated exchange, it remains subject to the CFTC's regulatory framework.