Six firms including Coinbase and Kalshi back CFTC against overturning approval of U.S. single-stock perpetual futures trading

TechFlow reported on Nov. 10, citing The Block, that Coinbase, Kalshi, Kraken parent Payward, DRW Holdings, Jump Trading and Paradigm have sought to file amicus briefs with a U.S. federal court supporting the U.S. Commodity Futures Trading Commission's (CFTC) regulatory authority over single-stock perpetual futures.

Earlier, the industry association Capital Markets Alliance (CMA), whose members include Cboe and Citadel Securities, filed a lawsuit seeking to revoke the CFTC's approval of the related products. CMA argues that single-stock perpetual contracts should be classified as security-based swaps and fall under the regulatory jurisdiction of the U.S. Securities and Exchange Commission (SEC).

Coinbase and the other firms, however, argue that the related products are security futures and that the SEC has been involved from the early stages of the regulatory process. According to court filings, the single-stock perpetual futures listing applications submitted by Coinbase, Kalshi and Payward were deemed approved on Nov. 2. The regulatory dispute remains pending a court ruling.

Source: TechFlow