Coinbase, Kalshi and Other Firms Back CFTC in Fight Over Stock Perpetuals
Summary
Coinbase, Kalshi, Kraken parent Payward, DRW, Jump Trading and Paradigm asked to support the CFTC in a federal case challenging approvals for perpetual futures tied to individual US stocks. The Capital Markets Alliance argues the products fall under securities law; the firms say the CFTC has authority and that blocking them could drive activity offshore. A judge denied the group’s request for an immediate halt, while expressing doubts about the CFTC’s statutory basis and finding the plaintiff had not shown the imminent irreparable harm needed for emergency relief. The court has not ruled on the merits, and the products’ future availability remains uncertain. The case could shape US regulation of stock-linked derivatives.
