According to Mars Finance, the U.S. Securities and Exchange Commission (SEC) filed an amicus brief this week supporting the U.S. Commodity Futures Trading Commission (CFTC). The CFTC was sued last week by the Capital Markets Alliance (CMA), which is seeking to overturn the CFTC’s approval of single-stock perpetual derivatives. CMA is an industry group whose members include Cboe and Citadel Securities. In its brief, the SEC rebutted CMA’s claim that the CFTC had “gone rogue,” saying that the CFTC’s new rule changes are also subject to SEC review and that the SEC and CFTC often work together—a relationship that is crucial to regulating perpetual stock contracts. The SEC said its brief shows that the characterization of “a rogue CFTC and an absent SEC” is wrong. In its lawsuit, CMA alleges that the CFTC violated the Administrative Procedure Act because these perpetual derivatives fall under SEC jurisdiction, and asks the court to “vacate the approval.” Several crypto companies, including Coinbase, Kraken parent company Payward, Kalshi, DRW Holdings, Paradigm, and Jump Trading, subsequently filed a joint brief opposing CMA. Coinbase, Kalshi, and Payward have submitted applications to the CFTC to list perpetual stock contracts linked to U.S. equities, which were deemed approved on November 2. The economic advocacy group Better Markets and former SEC Commissioner Allison Herren Lee also filed briefs arguing that these new products should be regulated by the SEC. Better Markets said the products are in fact security-based swaps and should be regulated by the SEC, with robust investor protections.