The SEC didn’t mince words this time—it came down firmly on the CFTC’s side.
PANews, November 12 — According to Cointelegraph, the U.S. Securities and Exchange Commission (SEC) filed a brief with the court addressing a dispute over which agency has authority to regulate single-stock perpetual derivatives, siding with the Commodity Futures Trading Commission (CFTC). The industry group Capital Markets Alliance had previously sued the CFTC, seeking to overturn its approval of these products. In its brief, the SEC rejected the CMA’s claim that the CFTC had “overstepped its authority,” arguing that changes to the CFTC’s new rules must also be reviewed by the SEC. The SEC added that it and the CFTC frequently work together, which is essential to regulating single-stock perpetual contracts.
After the CMA filed its lawsuit, crypto firms including Coinbase, Payward (the parent company of Kraken), and Kalshi submitted a joint brief opposing the CMA. Three of them had already applied to list single-stock perpetual contracts and were deemed approved on November 2. Others, including Better Markets, argue that these products should be regulated by the SEC.
Observation 1: By stating in its brief that the products “must be reviewed by the SEC,” the agency has effectively added a layer of legal backing for products that have already been approved, reducing the short-term risk that compliant single-stock perpetual contracts could be overturned on policy grounds. Observation 2: The same statement also suggests that bringing future products to market may involve an additional step, so the process may not move faster.
Which matters more to you: the certainty this backing provides, or the time cost of an extra review?
Image 1: SEC sides with CFTC as dispute over regulatory authority for single-stock perpetual derivatives heats up · Screenshot of source page
Image source: https://www.panewslab.com/zh/articles/01a1cd0f-1f0f-75f2-a1d0-1b700bb0a615
PANews, November 12 — According to Cointelegraph, the U.S. Securities and Exchange Commission (SEC) filed a brief with the court addressing a dispute over which agency has authority to regulate single-stock perpetual derivatives, siding with the Commodity Futures Trading Commission (CFTC). The industry group Capital Markets Alliance had previously sued the CFTC, seeking to overturn its approval of these products. In its brief, the SEC rejected the CMA’s claim that the CFTC had “overstepped its authority,” arguing that changes to the CFTC’s new rules must also be reviewed by the SEC. The SEC added that it and the CFTC frequently work together, which is essential to regulating single-stock perpetual contracts.
After the CMA filed its lawsuit, crypto firms including Coinbase, Payward (the parent company of Kraken), and Kalshi submitted a joint brief opposing the CMA. Three of them had already applied to list single-stock perpetual contracts and were deemed approved on November 2. Others, including Better Markets, argue that these products should be regulated by the SEC.
Observation 1: By stating in its brief that the products “must be reviewed by the SEC,” the agency has effectively added a layer of legal backing for products that have already been approved, reducing the short-term risk that compliant single-stock perpetual contracts could be overturned on policy grounds. Observation 2: The same statement also suggests that bringing future products to market may involve an additional step, so the process may not move faster.
Which matters more to you: the certainty this backing provides, or the time cost of an extra review?
Image 1: SEC sides with CFTC as dispute over regulatory authority for single-stock perpetual derivatives heats up · Screenshot of source page
Image source: https://www.panewslab.com/zh/articles/01a1cd0f-1f0f-75f2-a1d0-1b700bb0a615
