Coinbase Global Inc. (NASDAQ:COIN), Kalshi, and Kraken parent Payward are supporting the Commodity Futures Trading Commission (CFTC) in a legal battle over whether U.S. exchanges can offer single-stock perpetual futures. The firms, along with DRW Holdings, Jump Trading, and Paradigm, have requested federal court permission to file an amicus brief defending the CFTC’s authority to regulate these products.
The dispute stems from a lawsuit filed last week by the Capital Markets Alliance (CMA), which includes members like Cboe and Citadel Securities. The CMA argues that equity perpetual futures, which have no expiration dates, should be classified as security-based swaps rather than futures. This classification would place them under a different regulatory framework and prevent their listing as futures on CFTC-regulated exchanges.
However, the crypto firms argue that the Securities and Exchange Commission (SEC) participated in the regulatory process from the beginning. Coinbase General Counsel Molly Abraham noted that Congress established a framework in the year 2000 distinguishing security futures from swaps. Coinbase, Kalshi, and Payward submitted applications to list perpetual futures tied to U.S. stocks, which were deemed approved on Nov. 2.
Coinbase Vice Chairman Ryan VanGrack emphasized that U.S. investors should have access to products already trading in global markets under the strong consumer protections and joint oversight of the CFTC and SEC. The lawsuit now puts the future of U.S.-listed stock perpetual futures in question.