Coinbase, Kalshi back CFTC in stock perpetual futures lawsuit

Coinbase and Kalshi joined four other companies in filing an amicus brief backing the Commodity Futures Trading Commission in a lawsuit over newly permitted stock perpetual futures, according to Cointelegraph. The outlet, citing a Coinbase legal representative, named the six companies supporting the CFTC as Coinbase, Kalshi, Payward, DRW Holdings, Jump Trading and Paradigm Operations.

The dispute follows a Nov. 3 announcement from the CFTC that single-stock perpetual futures could begin trading on US-regulated exchanges for the first time, Cointelegraph reported. These instruments let traders bet on individual stock price moves without owning the underlying shares and carry no fixed expiration date.

The memecoin morning brief

Yesterday's top memecoin movers, launchpad numbers and the stories that matter. Free, every morning.

Email address

Get it free

Website

Privacy policy

The Capital Markets Alliance Association, whose members include Cboe and Citadel Securities, sued the CFTC to challenge its authority over the products, according to Cointelegraph. The group argues the futures lack a set expiration and should instead be treated as security-based swaps under SEC oversight rather than as security futures regulated by the CFTC.

A federal judge, identified by Cointelegraph as Judge Caproni, found the products appeared to qualify as swaps rather than security futures, but denied the CMAA's request for a temporary restraining order, ruling the group had not shown imminent, irreparable harm. Cointelegraph reported that the eventual outcome of the lawsuit, and whether the SEC will weigh in on how the products should be classified, remain unresolved.