There is an important distinction between a sports book and a sports event contract.

When you talk about a DCM in exchange like Kalshi, they are pairing buyers and sellers on an exchange,

and that determines the odds and the outcomes. When you are a sports book, you are determining the odds,

right? And people are betting against you. You have an incentive for

your customers to lose because if they win, you don't gain. It's a very fundamental different

structure.

Coinbase has filed suits against regulators in Connecticut, Illinois, Michigan, and Nevada to argue that prediction markets do not fall under state gambling laws.

Rather, they fall under the CFTC's jurisdiction, like you were just saying.

Joining us now to unpack more is Coinbase's VP of Legal and Global Head of Litigation, Ryan VanGrak.

Ryan, welcome back.

Great to see you. Yeah, great to have you here. Now, let's just start with the story we were

just talking about. How were you reading the CFTC's response to Kalshi coming down on those two folks?

I thought it was critical and important because it is the markets functioning as intended.

People in this conversation seem to forget the CFTC has been around for decades,

monitoring, overseeing, and regulating a multi-trillion dollar market.

And what we saw with Kalshi and the response,

as Ranaud notes from the CFTC, is the markets functioning as intended. The CFTC is long and

uniquely capable of handling potential insider trading risks. And it relies on the DCMs, the exchanges,

to be the first line of defense.

And we saw the markets working in that regard.

So I think it was good and important for Kalshi to be surveilling and identifying these types of activities.

And it makes perfect sense for the CFDC to follow on and remind the marketplace that they are very much the cop on the beat

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