Add as a preferred source on GoogleSix Firms Seek Permission to File Brief Backing CFTC in U.S. Stock Perpetual Case
Coinbase, Kalshi and four other firms say federal law classifies the contracts as security futures. They also argue blocking U.S. listings could shift trading offshore.
Six companies asked a federal court for permission to file a brief supporting the Commodity Futures Trading Commission’s authority over perpetual contracts tied to individual U.S. stocks, a dispute over how the products fit under federal law.
The group includes Coinbase, Kalshi, Kraken parent Payward, DRW Holdings, Jump Trading and Paradigm. The firms are seeking to support the CFTC in litigation challenging its approval of the contracts.
The firms contend the Commodity Exchange Act and a securities-futures framework established by Congress in 2000 classify the products as security futures rather than securities-based swaps. They also argue that blocking U.S. listings could push trading activity offshore.
The dispute follows the CFTC’s Nov. 3 announcement that single-stock perpetual contracts could begin trading on registered exchanges. Cboe has also joined a lawsuit seeking to overturn the CFTC’s approval.
Riza Dagoc
Riza Dagoc reports on regulation, investing and the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.