A US court has ruled that Kalshi's contract is a swap product regulated by the Commodity Futures Trading Commission (CFTC), according to Coinbase Chief Legal Officer Paul Grewal. Despite perceptions that Kalshi's product resembles sports betting, the court clarified that the legal nature of the contract remains unchanged. The ruling emphasizes that events like a sports match and its outcome are considered occurrences under swap contracts, which fall under the CFTC's jurisdiction. Grewal highlighted that even if a product appears similar to sports betting, it is subject to CFTC regulation if it meets the swap definition and is traded on a regulated exchange.