Traditional exchanges are really feeling the pressure this time.
According to Wu Blockchain, the Capital Markets Alliance (CMA), made up of institutions including Cboe and Citadel Securities, sued the CFTC in the U.S. District Court for the Southern District of New York on November 3, seeking to overturn its approval of stock perpetual futures listings on Coinbase, Kalshi, and Bitnomial. The CMA argues that these products cross the regulatory boundary between securities and derivatives, effectively using the courts to halt the approvals.
The development is likely negative for COIN and the new product lines at Kalshi and Bitnomial. If the court sides with the CMA, stock perpetual futures could be forced off the market, blocking crypto exchanges’ path into stock derivatives. For traders, the short-term narrative around competition between COIN and traditional exchanges may come under pressure. However, this is a compliance dispute and does not directly change the pricing of major assets such as Bitcoin and Ethereum.
Two scenarios to watch: first, whether the court issues a temporary injunction, which would directly determine whether the products can remain listed; and second, whether the CFTC can defend its approval. If the approval is overturned, it would deal a blow both to expectations for crypto platforms’ product expansion and to sentiment across the sector.
Are you more focused on whether the court will issue an injunction, or on whether the CFTC can defend its approval?
Source: Wu Blockchain
Image 1: Cboe-backed group sues the CFTC, challenging approval of stock perpetual futures on Coinbase and Kalshi · Screenshot of source page
Image source: https://www.wublock123.com/news/cboe-sues-cftc-over-coinbase-kalshi-bitnomial-stock-perpetuals-approval-71271
According to Wu Blockchain, the Capital Markets Alliance (CMA), made up of institutions including Cboe and Citadel Securities, sued the CFTC in the U.S. District Court for the Southern District of New York on November 3, seeking to overturn its approval of stock perpetual futures listings on Coinbase, Kalshi, and Bitnomial. The CMA argues that these products cross the regulatory boundary between securities and derivatives, effectively using the courts to halt the approvals.
The development is likely negative for COIN and the new product lines at Kalshi and Bitnomial. If the court sides with the CMA, stock perpetual futures could be forced off the market, blocking crypto exchanges’ path into stock derivatives. For traders, the short-term narrative around competition between COIN and traditional exchanges may come under pressure. However, this is a compliance dispute and does not directly change the pricing of major assets such as Bitcoin and Ethereum.
Two scenarios to watch: first, whether the court issues a temporary injunction, which would directly determine whether the products can remain listed; and second, whether the CFTC can defend its approval. If the approval is overturned, it would deal a blow both to expectations for crypto platforms’ product expansion and to sentiment across the sector.
Are you more focused on whether the court will issue an injunction, or on whether the CFTC can defend its approval?
Source: Wu Blockchain
Image 1: Cboe-backed group sues the CFTC, challenging approval of stock perpetual futures on Coinbase and Kalshi · Screenshot of source page
Image source: https://www.wublock123.com/news/cboe-sues-cftc-over-coinbase-kalshi-bitnomial-stock-perpetuals-approval-71271
