Coinbase, Kalshi, Kraken parent Payward, DRW Holdings, Jump Trading, and Paradigm have moved for leave to file an amicus brief defending the Commodity Futures Trading Commission. The filing supports the agency’s authority to regulate single-stock perpetual futures in the United States. This legal action responds to a lawsuit filed last week by the Capital Markets Alliance. The CMA is an industry association with members including Cboe and Citadel Securities. The group seeks to overturn the CFTC’s recent approval of these products.
Regulatory Authority Dispute
The CMA argues that equity perps do not expire on a set date, so they should be treated as "security-based swaps" rather than futures. The association claims the CFTC overstepped the Securities and Exchange Commission’s authority by listing them on regulated exchanges. In response, the crypto firms state that the SEC was "at the table from the very start" of the regulatory process. According to the Monday court filing, Coinbase, Kalshi, and Payward submitted applications with the CFTC to list equity perps tied to U.S. stocks. These applications were deemed approved on Nov. 2. Perpetual futures allow traders to speculate on price movements without holding the underlying asset, and unlike traditional contracts, they have no expiration date.
Molly Abraham, general counsel of Coinbase, wrote on X that under the Commodity Exchange Act and the securities futures framework Congress established in 2000, security futures products are not swaps. She emphasized that the agencies jointly sought public comment on whether perpetual contracts should be classified as security futures. Ryan VanGrack, Vice Chairman of Coinbase, added that global markets are already trading equity perps. He stated that U.S. investors deserve access to these markets under the strong consumer protections and joint oversight of the CFTC and SEC. VanGrack argued that the U.S. should lead, not cede, this space. The CMA’s position remains that the current classification is legally flawed because it ignores the lack of a fixed maturity date.
Market Access Arguments
The crypto firms assert that the existing regulatory framework adequately covers these instruments. They point to the 2000 legislation that created the securities futures category, which distinguishes these products from swaps. By supporting the CFTC, the companies aim to secure a clear path for listing equity perps on U.S. exchanges. The CMA counters that allowing such products on CFTC-regulated exchanges violates the division of authority between the two agencies. The outcome of this amicus brief will likely determine whether the CFTC can maintain its jurisdiction over non-expiring derivatives linked to individual stocks.
