Futures or Swaps? Wall Street Takes CFTC to Court Over Stock Perpetuals

TLDR A Cboe and Citadel Securities-backed group sued the CFTC on November 3. The suit claims single-stock perpetual futures are security-based swaps under SEC authority. The CFTC approved the contracts for U.S. trading the same day. The CFTC called the lawsuit “troubling” interference with regulated markets. Kalshi, Coinbase Derivatives and Bitnomial have filed plans for stock-linked perpetuals. A legal fight over which regulator should oversee a new type of stock derivative has reached federal court.