Coinbase, Kalshi, Kraken parent back CFTC in stock perps lawsuit

Coinbase, Kalshi, Kraken parent Payward and three trading firms have asked a federal court to accept a legal brief supporting the Commodity Futures Trading Commission's authority to regulate perpetual futures tied to individual U.S. stocks. Coinbase, Kalshi, Payward, DRW, Jump Trading and Paradigm filed a proposed amicus brief supporting CFTC authority. The Capital Markets Alliance lawsuit challenges federal approvals allowing single-stock perpetual futures on regulated exchanges. Coinbase Derivatives, KalshiEX and Bitnomial submitted applications that were deemed approved on November 2, 2026. A federal judge denied emergency relief but questioned whether perpetual contracts qualify as security futures.