Coinbase and other digital asset firms are defending the CFTC's regulatory authority in court against a challenge from the Capital Markets Alliance, which seeks to shift oversight of stock perpetual futures to the SEC.
Coinbase's application to list U.S. stock perpetual futures was deemed approved on Nov. 2, opening a new product line, and it has filed a court letter supporting the CFTC's authority. The outcome hinges on the lawsuit by the Capital Markets Alliance, filed Nov. 3, which seeks to move these products to SEC jurisdiction, so the approval's value remains legally contested.
Cboe is named as a backer of the Capital Markets Alliance lawsuit seeking to place stock perpetual futures under SEC jurisdiction, a move that could protect traditional exchange turf. The article gives no figures on Cboe's exposure, and its role as a backer is indirect, so the price effect is limited and two-sided.
Coinbase, Kalshi, and Kraken parent Payward have filed a legal letter supporting the CFTC's authority to regulate perpetual futures tied to individual stocks. The move follows a lawsuit filed on Nov. 3 by the Capital Markets Alliance, which is backed by Cboe and Citadel Securities and argues these products should fall under SEC jurisdiction. The applications for these perpetual contracts were deemed approved by the CFTC on Nov. 2.
Its application to list U.S. stock perpetual futures was deemed approved on Nov. 2, meaning it can move ahead with offering the contracts unless the court challenge succeeds.
The Capital Markets Alliance, which says it is backed by Cboe and Citadel Securities, argues the stock perps fall under SEC rather than CFTC jurisdiction.
Cboe is named as a backer of the Capital Markets Alliance, which argues stock perpetual futures belong under SEC, not CFTC, jurisdiction.