Coinbase, Kalshi, Payward, Kraken’s parent, DRW Holdings, Jump Trading and Paradigm asked a federal judge to file a brief supporting the Commodity Futures Trading Commission’s position. The companies argue that the regulator’s approval of perpetual futures on individual stocks falls within existing US futures laws. The Capital Markets Alliance Association, whose members include Cboe and Citadel Securities, is challenging that approval and contends that contracts without an expiration date are security-based swaps overseen primarily by the SEC. Judge Valerie Caproni said the CFTC likely exceeded its statutory authority, but did not halt trading because the trade group failed to demonstrate urgent and lasting harm. Single-stock perpetual futures therefore remain available for now, pending a further court decision.
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