Six Firms Ask to Support CFTC Opposition in Suit Targeting Perpetual Stock Contracts
Key Facts
Coinbase, Kalshi, Payward, DRW Holdings, Jump Trading and Paradigm asked the court for permission to file an amicus brief supporting the U.S. Commodity Futures Trading Commission, or CFTC, in opposing a request for an injunction targeting approvals for perpetual stock contracts. According to The Block’s coverage published on November 10, the firms back the agency’s position against a request by the Capital Markets Market Structure Coalition for a preliminary injunction. The dispute centers on which regulator has authority over these products, and whether they are futures contracts under CFTC oversight or securities-based swaps within the jurisdiction of the U.S. Securities and Exchange Commission, or SEC. Applications by Coinbase, Kalshi and Payward to list the contracts were deemed approved on November 2, according to CoinDesk. The dispute therefore directly affects the regulatory path for listing the contracts in the United States.
The Capital Markets Market Structure Coalition says perpetual contracts do not expire on a fixed date and should therefore be classified as “securities-based swaps,” rather than futures contracts. The coalition’s position is that the products should fall under SEC authority, not be listed as futures contracts on exchanges overseen by the CFTC. The six firms argue that they are securities futures and support the agency’s opposition to the preliminary injunction request. The firms say the SEC has been involved since the start of the regulatory process, and that the two agencies jointly sought public comment on classifying perpetual contracts as securities futures. Coinbase Vice President Ryan VanGrack said, “American investors deserve access to these markets under strong consumer protection and joint oversight by the CFTC and SEC.”
The issue extends beyond the classification label to the nature of the contract and how it is settled. In a letter to the SEC dated October 14, Cboe said perpetual stock contracts do not meet the definition of securities futures because that definition requires a contract “for future delivery.” Cboe added that, by design, these contracts have no final settlement date and do not require delivery of the underlying security or final cash settlement at a future date. The letter concluded that perpetual stock contracts are “securities-based swaps subject to the Commission’s jurisdiction.” That view aligns with the Capital Markets Market Structure Coalition’s argument about the absence of a fixed expiration date, while the firms supporting the CFTC maintain the path to classifying them as futures.
The Capital Markets Market Structure Coalition filed its lawsuit on November 3, according to CoinDesk, and a CFTC spokeswoman described the action as “concerning.” That same day, according to CoinDesk’s coverage, a federal judge rejected the coalition’s request for a temporary restraining order. This came after the three firms’ applications were deemed approved on November 2, placing the approvals and the legal action at the center of the current dispute. The rejection of the temporary request does not change the fact that the coalition is challenging the approvals and seeking a preliminary injunction, while the six firms have filed to intervene with an amicus brief supporting the CFTC’s opposition. The core dispute remains whether the absence of an expiration date takes the contracts out of the futures category and places them under securities regulation.
A previous regulatory approval for a perpetual product provides background to the path cited by the firms and the regulator. On May 29, 2026, the CFTC announced it had issued an order approving the listing of a Kalshi perpetual contract linked to the spot price of Bitcoin as a futures contract. The agency said at the time that the contract’s design might not be suitable for every asset class. That approval differs from the current dispute, which focuses on perpetual contracts linked to stocks and the limits of CFTC and SEC jurisdiction. In trading, Coinbase shares closed at $136.1 on November 9, according to EL7 data.