Coinbase, Kalshi, Payward and Others Seek to File Amicus Briefs Backing CFTC Oversight of Stock Perpetual Futures

Nov. 10: According to The Block, Coinbase, Kalshi, Payward, DRW Holdings, Jump Trading and Paradigm have asked a court for permission to file amicus briefs supporting the U.S. Commodity Futures Trading Commission's (CFTC) authority to regulate single-stock perpetual futures in the United States. The briefs respond to a lawsuit filed last week by the Capital Markets Alliance (CMA), which is seeking to overturn the CFTC's approval of these products. The CMA argues that stock perpetual contracts have no fixed expiry date and should be treated as "security-based swaps," which cannot be listed on CFTC-regulated exchanges. The crypto firms counter that the SEC has been "involved from the start" in the regulatory process and that the two agencies jointly sought public comment.

Coinbase General Counsel Molly Abraham said that under the Commodity Exchange Act and the security futures framework Congress established in 2000, security futures products are not swaps. Coinbase Vice Chairman Ryan VanGrack said global markets are already trading stock perpetual contracts, and U.S. investors should be able to gain access to these markets under joint CFTC and SEC oversight.