Capital Markets Alliance Sues CFTC Over Approval of Equity Perpetual Futures

Summary

• The Capital Markets Alliance (CMA) filed a lawsuit against the CFTC over the approval of Equity Perpetual Futures trading in the U.S.
• The CMA named Coinbase, Kalshi and Bitnomial as defendants and sought emergency relief to block the contracts from being listed as security futures.
• Adam Ford said the rushed launch of financial products that bypass established regulatory frameworks weakens investor protection and undermines the soundness and resilience of the U.S. financial system.

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The Capital Markets Alliance, whose members include major exchanges and market makers, has sued the U.S. Commodity Futures Trading Commission after the agency approved trading in perpetual futures tied to individual stocks on regulated exchanges.

Crypto news outlet The Block reported on November 3 that the CMA filed suit against the CFTC over its approval of Equity Perpetual Futures trading in the U.S.

The CMA named Coinbase, Kalshi and Bitnomial as defendants and sought emergency relief to block the contracts from being listed as security futures.

“The rushed launch of financial products that bypass established regulatory frameworks weakens investor protection and undermines the soundness and resilience of the U.S. financial system,” CMA Executive Director Adam Ford said.

CMA members include Cboe, Citadel Securities and the Healthy Markets Association.

JH Kim