Crypto coalition backs CFTC oversight of single-stock perpetual futures

Coinbase, Kalshi, Kraken, DRW, Jump Trading and Paradigm have filed an amicus brief backing the U.S. Commodity Futures Trading Commission’s regulatory authority over single-stock perpetual futures in the United States. The filing comes after the CFTC approved extending the perpetual contract structure, which originated in crypto markets and has no expiration date, to U.S. single-stock derivatives. CME Group, Cboe and Citadel Securities, representing a coalition of traditional finance exchanges and market makers, then sued to overturn the approval, arguing the CFTC had overstepped its authority, as the jurisdictional dispute has intensified. In the brief submitted to the court, the crypto and fintech coalition argued single-stock perpetual futures fall clearly within the CFTC’s regulatory oversight under the Commodity Exchange Act. The group also said the innovative derivatives could improve market liquidity and price discovery while trading safely within the regulatory framework.