The companies filed a letter supporting the CFTC with the United States District Court for the Southern District of New York in a lawsuit brought by the Capital Markets Alliance (CMA) earlier this month. The group of supporters includes Coinbase Global (COIN), Kalshi, Payward, the parent company of Kraken, DRW Holdings, Jump Trading and Paradigm.
The dispute centers on the regulatory treatment of open-ended futures contracts linked to equities. These products resemble perpetual futures already used in cryptocurrency derivatives markets, allowing traders to take positions on an asset's future price without holding a contract that expires on a predetermined date.
Capital Markets Alliance Challenges CFTC Authority
The Capital Markets Alliance is seeking to challenge the CFTC's approval of perpetual futures contracts for individual stocks. The organization argues that equity-based versions of these products should fall under the jurisdiction of the U.S. Securities and Exchange Commission (SEC), rather than the commodities regulator.
The CMA has said it is supported by prominent traditional finance companies, including broker-dealers Cboe and Citadel Securities. Its legal challenge therefore places the regulatory treatment of stock perpetual futures at the center of a dispute involving both digital asset companies and established financial market participants.
The outcome could affect which U.S. regulator has authority over these products, although the source material does not indicate that the court has reached a decision on the issue.
Stock Perpetual Futures Applications Deemed Approved
The legal dispute comes as several companies seek to bring stock perpetual futures to the U.S. market. Coinbase, Kalshi and Payward have each submitted applications to list these products. Their applications were deemed approved on November 2.
Perpetual futures are derivative contracts that allow traders to speculate on the future price of an underlying asset. Their defining feature is the absence of an expiration date, distinguishing them from conventional futures contracts that settle or expire at a specified time.
The products have become familiar in cryptocurrency derivatives markets, but their application to individual stocks has raised questions about the division of regulatory responsibilities between the CFTC and SEC.
CFTC Pushes Back Against the Lawsuit
A CFTC spokesperson criticized the legal action when the CMA filed its lawsuit on November 3. In an email to CoinDesk, the spokesperson described the move as “troubling.”
“Our markets should be governed by law, not litigation campaigns intended to block innovation,” the spokesperson added.
The dispute now places the CFTC's regulatory authority over stock-linked perpetual futures before the federal court in the Southern District of New York, with Coinbase, Kalshi, Payward and other industry participants formally backing the agency's position.
source: coindesk
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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The articles on Hokanews are here to keep you updated on the latest buzz in crypto, tech, and beyond—but they’re not financial advice. We’re sharing info, trends, and insights, not telling you to buy, sell, or invest. Always do your own homework before making any money moves.
Hokanews isn’t responsible for any losses, gains, or chaos that might happen if you act on what you read here. Investment decisions should come from your own research—and, ideally, guidance from a qualified financial advisor. Remember: crypto and tech move fast, info changes in a blink, and while we aim for accuracy, we can’t promise it’s 100% complete or up-to-date.
