Coinbase, Kalshi and trading firms back CFTC in battle over stock perpetual futures

Coinbase, Kalshi, Payward, DRW Holdings, Jump Trading and Paradigm have sought permission to file an amicus brief supporting the CFTC's authority to regulate single-stock perpetual futures in the United States.
Coinbase legal executive Molly Abraham said the firms believe security futures should be governed under the framework established by Congress in 2000, rather than classified as swaps.
The move comes amid a legal challenge from the Capital Markets Alliance, a group backed by Cboe and Citadel Securities, which argues that the CFTC has exceeded its authority by allowing these products to trade.
Single-stock perpetual futures give traders leveraged exposure to individual equities without owning the underlying shares or facing a fixed contract expiration date.
Kalshi began offering the products on November 5, bringing a trading structure popular in crypto markets to US-listed equities.
The dispute could shape how traditional securities and crypto-style derivatives operate alongside each other in American markets.
For now, the regulatory classification remains contested, with supporters arguing that domestic o versight offers stronger protections than pushing trading activity offshore.