Coinbase and Kalshi Lead Six-Firm Push to Defend CFTC Stock Perpetual Approvals
Coinbase, Kalshi and four other financial firms have joined a legal battle supporting the Commodity Futures Trading Commission (CFTC) over single-stock perpetual futures. The companies want a federal court to uphold the regulator’s authority to oversee these derivatives in the United States.
On November 9, 2026, the six firms requested permission to submit a friend-of-the-court brief in the Southern District of New York. Their intervention follows a lawsuit challenging the CFTC’s approval of perpetual contracts tied to individual U.S. stocks.
Six Major Firms Challenge Regulatory Opposition
The companies supporting the CFTC include Coinbase, Kalshi, Kraken parent Payward, DRW Holdings, Jump Trading and Paradigm.
Their proposed filing opposes a preliminary injunction requested by the Capital Markets Alliance Association (CMAA). The trade group, whose members include Cboe and Citadel Securities, argues that the CFTC exceeded its legal authority.
The dispute centers on how regulators classify single-stock perpetual futures. Unlike traditional futures contracts, perpetual futures have no fixed expiration date. They allow investors to gain exposure to stock price movements without purchasing the underlying shares.
CMAA argues that these instruments qualify as security-based swaps, placing them under Securities and Exchange Commission (SEC) jurisdiction. However, the six firms maintain that existing federal law permits their classification as security futures.
Federal Judge Raises Questions About CFTC Authority
The legal challenge follows regulatory approvals that took effect on November 2, 2026. Applications involving Coinbase Derivatives, KalshiEX and Bitnomial Exchange received approval through the applicable regulatory process.
On November 3, U.S. District Judge Valerie Caproni denied CMAA’s request for a temporary restraining order. However, the judge indicated that the association was likely to succeed on its central legal argument.
The court rejected emergency relief because CMAA failed to establish a likelihood of irreparable harm. Consequently, the ruling did not resolve the broader dispute over regulatory authority.
Crypto Industry Seeks Clearer Derivatives Rules
The six companies argue that both the CFTC and SEC participated in the regulatory process. Their filing maintains that single-stock perpetual futures can operate within the existing framework for security futures.
The case could influence how cryptocurrency exchanges expand into traditional financial markets. Perpetual futures already represent an established trading product in cryptocurrency markets, making their introduction into U.S. equities commercially significant.
For now, the court must consider the competing legal arguments before determining whether to restrict the disputed approvals. The outcome could shape regulatory oversight of stock-linked perpetual derivatives and future product launches.
