Coinbase CLO: U.S. court has ruled that Kalshi event contracts are swap products regulated by the CFTC

Odaily Planet Daily reports that Coinbase Chief Legal Officer paulgrewal.eth stated on the X platform that a relevant court ruling in the United States indicated that ordinary users might perceive Kalshi’s products as “similar to sports betting, or even indistinguishable,” but the court emphasized that this perception does not change their legal classification because “a three-hour game and the Titans winning that game are both events,” and the related contracts still qualify as “swaps,” which are under the exclusive jurisdiction of the U.S. 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 regulatory framework.