Coinbase CLO: U.S. Court Determines Kalshi Event Contracts Are Swaps Under CFTC Jurisdiction

Odaily News Coinbase Chief Legal Officer paulgrewal.eth stated on platform X that in a related ruling, a U.S. court noted that average users might perceive Kalshi's products as "similar to, or even indistinguishable from, sports betting." However, the court emphasized that this perception does not alter their legal nature, as "a three-hour game and the Titans winning that game are both occurrences of events." The relevant contracts still constitute "swaps" and, by law, fall under the exclusive jurisdiction of the U.S. Commodity Futures Trading Commission (CFTC). paulgrewal.eth believes this ruling implies 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.