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Coinbase, Kalshi, Kraken Parent Back CFTC in Stock Perps Lawsuit
The firms say perpetual contracts fit the existing security futures framework and urge the judge to reject the alliance’s injunction request.
- On Tuesday, six companies including Coinbase, Kalshi, and Kraken parent Payward filed an amicus brief in the United States District Court for the Southern District of New York supporting the Commodity Futures Trading Commission's authority over single-stock perpetual futures.
- The Capital Markets Alliance sued earlier this month, challenging the CFTC's approval of equity perpetual futures, with members Cboe and Citadel Securities arguing the products should fall under Securities and Exchange Commission jurisdiction instead.
- In their filing, the companies argued that the Commodity Exchange Act permits perpetual contracts within the security futures framework, citing standardized terms, margin requirements, and centralized clearing as shared characteristics with traditional futures.
- U.S. District Judge Valerie Caproni denied the alliance's request for a temporary restraining order, though she questioned whether the products legally constitute security-based swaps, leaving the CFTC approvals in place pending further briefing.
- Coinbase Vice Chairman Ryan VanGrack stated the U.S. should lead in this space, while the CFTC described the alliance's legal strategy as "troubling," adding that markets should be governed by law, not litigation campaigns intended to block innovation.
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Digital asset companies have backed the CFTC in a dispute over regulating perpetual futures contracts linked to single stocks.
Coinbase, Kalshi, Payward Back CFTC in Perp Futures Lawsuit
Coinbase, Kalshi, and Payward have asked a federal court for permission to file an amicus brief supporting the CFTC's authority over single-stock perpetual futures, countering a lawsuit by the Capital Markets Alliance. Read the original on Coinbase and Kalshi defend CFTC authority over single-stock perps. For more crypto news and analysis, visit TheCurrencyAnalytics.com.
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