The American Securities Association asked a federal court to halt single-stock perpetual contracts while the Capital Markets Alliance’s challenge to the Commodity Futures Trading Commission is being considered. Its intervention, filed on November 10 and announced on November 12, highlights the risk of substantial losses for retail investors because of leverage, forced liquidation, and trading during thin sessions. The CFTC defends the products as a regulated domestic alternative to offshore markets, emphasizing risk management and price discovery. On November 3, Judge Valerie Caproni denied a temporary restraining order because the plaintiff had not demonstrated imminent, irreparable harm, while finding that it was likely to succeed on its statutory-authority argument at that stage. These arguments remain the positions of interested parties, and only a court order will determine any restrictions on the products.
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