SEC backs CFTC in court fight over single-stock perpetual futures

The SEC filed an amicus brief supporting the CFTC against a legal challenge from the Capital Markets Alliance Association, an industry group including Cboe and Citadel Securities. The lawsuit targets CFTC approvals deemed valid on November 2, 2026, for single-stock perpetual futures listed by Coinbase Derivatives, KalshiEX, and Bitnomial. U.S. District Judge Valerie Caproni denied an emergency injunction on November 3, 2026, while six crypto and trading firms filed briefs backing the CFTC.

SEC files brief supporting CFTC

• ▪The SEC filed an amicus brief in federal court defending the CFTC's approval of single-stock perpetual futures contracts against a lawsuit brought by the Capital Markets Alliance Association
• ▪In an amicus brief, the SEC rejected claims by the Capital Markets Alliance that the CFTC acted without coordination, stating both agencies collaborate to oversee security futures products

Lawsuit details and court rulings

• ▪U.S. District Judge Valerie Caproni denied a temporary restraining order against single-stock perpetual futures
• ▪Plaintiffs in the CFTC lawsuit argue that non-expiring single-stock perpetual futures lack delivery obligations and must be classified as security-based swaps under SEC authority
• ▪The Capital Markets Alliance Association filed a lawsuit, alleging the CFTC violated administrative law by approving stock perps

Industry group legal maneuvers

• ▪Traditional financial market participants backing the Capital Markets Alliance Association lawsuit include Cboe and Citadel Securities
• ▪The Capital Markets Alliance Association scheduled its reply to the CFTC's opposition to a preliminary injunction for November 10, 2026

Crypto coalition files supportive brief

• ▪A coalition of crypto firms including Coinbase and Kalshi argued in court filings that single-stock perpetual futures qualify as security futures under existing federal law and represent superior products to traditional futures
• ▪Six firms including Coinbase, Kalshi, Kraken parent Payward, DRW Holdings, Jump Trading, and Paradigm requested permission around November 9-10, 2026, to file an amicus brief supporting the CFTC

Regulator actions and statements

• ▪The CFTC announced on November 3, 2026, that single-stock perpetual futures could begin trading on U.S.-regulated exchanges for the first time
• ▪A CFTC spokesperson criticized the Capital Markets Alliance Association lawsuit on November 3, 2026, calling it a litigation campaign intended to block market innovation

CFTC application and approval timeline

• ▪The CFTC single-stock perpetual futures applications were deemed approved, without agency objection
• ▪Coinbase Derivatives, KalshiEX, and Bitnomial Exchange submitted applications to list single-stock perpetual futures under CFTC Regulation 40.3

Challenges to crypto perps policy

• ▪The CFTC filed a motion to dismiss CME Group's lawsuit over cryptocurrency perpetual futures policy, which currently awaits judicial action
• ▪CME Group previously filed a separate legal challenge against the CFTC regarding the regulator's policy on cryptocurrency perpetual futures