Six Institutions Including Coinbase Apply to File Comments Supporting CFTC Regulation of Single-Stock Perpetual Futures

On November 10, according to The Block, Coinbase, Kalshi, Payward (the parent company of Kraken), DRW Holdings, Jump Trading, and Paradigm have sought permission from a federal court to file an amicus curiae brief supporting the U.S. Commodity Futures Trading Commission’s (CFTC) authority to regulate single-stock perpetual futures.

The brief addresses a lawsuit filed by the Capital Markets Alliance, which seeks to overturn the CFTC's approval of the related products and argues that single-stock perpetual contracts should be classified as security-based swaps rather than futures. The six institutions noted that the U.S. Securities and Exchange Commission has been involved since the beginning of the regulatory process, and the two agencies previously jointly solicited public comment on product classification.