Coinbase and a coalition of industry players are backing the CFTC in a legal battle against the Capital Markets Alliance Association over the classification of stock perpetual futures.
Coinbase and five other firms filed an amicus brief on Monday backing the CFTC's approval of single-stock perpetual futures, days after Judge Valerie Caproni found the CFTC likely exceeded its authority. Trading remains live for now, but a preliminary injunction ruling looms, leaving the outlook for Coinbase's stock perp ambitions uncertain. Mixed legal signals offset each other in the near term.
Coinbase, Kalshi, and four other firms filed an amicus brief on Monday supporting the CFTC's authority to approve single-stock perpetual futures. This move follows a federal judge's recent finding that the regulator likely exceeded its statutory authority in allowing the contracts to trade.
Yes. The judge denied the request for a temporary restraining order, so the CFTC's trading approvals remain in place while the lawsuit proceeds.
Judge Valerie Caproni said the plaintiff was likely to succeed in its claim that the CFTC exceeded its statutory authority, though she did not halt trading.