This week, the SEC filed an amicus curiae brief with the court supporting the CFTC’s approval of single-stock perpetual futures and opposing its reversal. The plaintiff is industry group Capital Markets Alliance (CMA), whose members include Cboe and Citadel Securities. Its argument is that the CFTC exceeded its authority.
The opposing side is more noteworthy: Coinbase, Kraken parent company Payward, and Kalshi jointly filed a brief. Applications by all three to list perpetual stock contracts were deemed approved on November 2. The SEC says that CFTC rule changes are also subject to SEC review.
Put simply, this is a question of who gets to set the rules for stock-related perpetuals. Traditional exchanges want them regulated as securities, while crypto platforms have already secured approval and are moving ahead.
#SEC #CFTC #StockPerpetuals
The opposing side is more noteworthy: Coinbase, Kraken parent company Payward, and Kalshi jointly filed a brief. Applications by all three to list perpetual stock contracts were deemed approved on November 2. The SEC says that CFTC rule changes are also subject to SEC review.
Put simply, this is a question of who gets to set the rules for stock-related perpetuals. Traditional exchanges want them regulated as securities, while crypto platforms have already secured approval and are moving ahead.
#SEC #CFTC #StockPerpetuals