Six firms – Coinbase, Kalshi, Payward (the parent of Kraken), DRW Holdings, Jump Trading and Paradigm – have petitioned a federal judge to permit them to submit a brief in support of the Commodity Futures Trading Commission (CFTC) in an ongoing lawsuit.
Background of the dispute
The Capital Markets Alliance Association (CMAA) has sued to overturn the CFTC’s approval of perpetual futures contracts on individual stocks. The CMAA argues that contracts without a fixed expiration date are not futures but security‑based swaps, which would place them under the jurisdiction of the Securities and Exchange Commission (SEC) and subject them to stricter retail trading limits.
CFTC’s position
The CFTC maintains that single‑stock perpetual futures fall within existing U.S. futures regulations. In a brief shared by Coinbase’s legal representative, the firms contend that the products are consistent with current futures law and do not require reclassification.
Judicial outlook
Judge Valerie Caproni has indicated that the contracts appear more like swaps, suggesting the CFTC may have exceeded its statutory authority. However, she has not ordered an immediate halt to trading, noting that the plaintiffs have not demonstrated urgent, lasting harm. The next filing from the CMAA is scheduled for October 10.
Current status
While the court’s preliminary view leans toward the trade group’s argument, stock perpetual futures remain active pending further proceedings. The six firms continue to seek formal permission to file their supportive brief.
