A coalition of major crypto and trading firms—including Coinbase, Kalshi, Kraken parent Payward, DRW Holdings, Jump Trading, and Paradigm—has asked a federal court for permission to file an amicus brief supporting the Commodity Futures Trading Commission (CFTC) in a dispute over single-stock perpetual futures.
The legal fight began after the Capital Markets Alliance (CMA) sued to overturn the CFTC’s approval of equity perpetual futures contracts. The CMA argues that because these products never expire, they should be classified as security-based swaps rather than futures, and therefore cannot be listed on CFTC-regulated exchanges. The group also claims the CFTC is intruding on the authority of the Securities and Exchange Commission (SEC).
The supporting firms reject that interpretation. Coinbase, Kalshi, and Payward submitted applications to list equity perpetual contracts tied to U.S. stocks, and those applications were deemed approved on Nov. 2. The firms argue that the SEC participated in the regulatory process from the start and that both agencies jointly sought public feedback on whether perpetual contracts should be treated as security futures. Coinbase General Counsel Molly Abraham said that under the Commodity Exchange Act and the securities futures framework established by Congress in 2000, security futures products are not swaps.
Broader concerns have also emerged. The first wave of CFTC approvals expands U.S. access to perpetual derivatives, but critics warn about liquidation risks, high leverage and investor protection. Wall Street exchanges are challenging leverage and liquidation safeguards, and the eventual court ruling could reshape how cryptocurrency derivatives are regulated in the United States.
Coinbase Vice Chairman Ryan VanGrack argued that U.S. investors deserve access to equity perpetual markets under joint CFTC and SEC oversight, while supporters say global markets already offer such products.
