Coinbase, Kalshi and four other crypto and trading firms have asked a federal court to hear their case for the CFTC’s power to list perpetual futures on individual US stocks, days after a judge said the regulator had likely overstepped.
MoneyTurkey Crypto Desk | 10 November 2026
Key points
- Coinbase, Kalshi, Payward, DRW Holdings, Jump Trading and Paradigm Operations asked a federal court to accept a brief defending the CFTC’s authority to regulate single-stock perpetual futures.
- US District Judge Valerie Caproni found the CFTC likely exceeded its statutory authority by allowing the contracts to trade as security futures but denied a temporary restraining order.
Coinbase, Kalshi and four other companies asked a federal court on Monday to accept a friend-of-the-court (amicus) brief backing the Commodity Futures Trading Commission in a lawsuit over single-stock perpetual futures, Cointelegraph reported. The filing comes days after a federal judge ruled that the CFTC likely exceeded its statutory authority by allowing the contracts to trade as security futures. The case will determine whether US exchanges can offer retail traders contracts that track individual stocks without expiration dates.
What happened
On Nov. 3 the CFTC announced that single-stock perpetual futures could begin trading on US-regulated exchanges for the first time. The Capital Markets Alliance Association, whose members include Cboe and Citadel Securities, sued the CFTC last week to challenge that decision (MoneyTurkey covered the suit).
The CMAA argues that because the contracts lack a fixed expiration date they should be regulated as security-based swaps, which are primarily overseen by the Securities and Exchange Commission and face tighter restrictions on retail trading. The six companies backing the CFTC disagree, arguing that a fixed expiration date is not required for a contract to qualify as a security future under joint CFTC and SEC oversight.
According to a proposed amicus brief shared by Coinbase legal representative Molly Abraham, the group includes Kraken parent Payward, trading companies DRW Holdings and Jump Trading, and crypto investment company Paradigm Operations. The companies argue that stock perpetual futures fall under existing US futures laws.
Judge’s ruling
US District Judge Valerie Caproni found that the plaintiff was likely to succeed in its claim that the CFTC exceeded its statutory authority by allowing stock perps to trade as security futures. Caproni found that the contracts appeared to qualify as swaps rather than security futures, casting doubt on the agency’s legal interpretation.
However, she denied the CMAA’s request for a temporary restraining order, finding that the group had failed to demonstrate imminent, irreparable harm. The decision left the CFTC’s trading approvals in place while the lawsuit proceeds. The CMAA is due to file its reply to the CFTC’s opposition to a preliminary injunction on Tuesday, 10 November.
Why it matters
Stock perps allow traders to speculate on the price movements of individual stocks without owning the shares. Unlike traditional futures, they have no fixed expiration date. The outcome of the case could determine whether US exchanges can offer retail traders these contracts.
What to watch
- The CMAA’s reply on the preliminary injunction, due Tuesday
- Whether the court accepts the six firms’ amicus brief
- The court’s ruling on the CMAA’s preliminary-injunction request
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For information only. Not investment advice.
Sources
- Cointelegraph: https://cointelegraph.com/news/coinbase-kalshi-cftc-stock-perpetual-futures-lawsuit
- The Block: https://www.theblock.co/news/regulation/2026-11-10-coinbase-kalshi-payward-back-cftc-perps-436971
- CoinDesk: https://www.coindesk.com/policy/2026/11/10/coinbase-kalshi-kraken-parent-back-cftc-in-legal-fight-over-stock-perpetual-futures
