Costco and 66 other issuers have objected to the tokenization of their shares on the OKXICE platform, which is seeking Securities and Exchange Commission approval. Unlike tokenized shares, which must preserve voting rights, dividends and a claim on residual assets, perpetual futures provide exposure to an action’s price without delivering shares or granting voting rights. Kalshi therefore offers a Costco contract with no expiration date and leverage of up to 4.9 times, while the CFTC has allowed eligible regulated venues to launch these products. Judge Valerie Capron found that the CFTC likely exceeded its authority by treating the contracts as security futures, but denied an emergency restraining order because the challengers failed to demonstrate imminent, irreparable harm. The case will determine which regulator oversees crypto-style products and which investor protections apply.
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