Coinbase, Kalshi and Payward Move to Defend CFTC Authority
Coinbase, Kalshi and Payward have moved for leave to file an amicus brief in support of the Commodity Futures Trading Commission (CFTC) in an ongoing lawsuit over single-stock perpetual futures, according to court filings. The three crypto and prediction-market firms are seeking to reinforce the federal regulator’s authority to oversee these novel derivatives products in the United States.
The legal action, whose exact filing date was not immediately confirmed, represents a coordinated push by crypto-native platforms to shape the regulatory perimeter around perpetual futures tied to individual equities. Such products would allow traders to take leveraged positions on single stocks without expiration dates, a structure common in offshore crypto markets but largely untested in U.S. regulated venues.
Why Single-Stock Perps Sit at the Center of a Turf War
Single-stock perpetual futures blur the line between securities and commodities. The CFTC has asserted jurisdiction over the products as derivatives, while the Securities and Exchange Commission (SEC) could claim oversight if the underlying asset is deemed a security. This ambiguity has made the instruments a flashpoint for regulatory competition.
By backing the CFTC, Coinbase, Kalshi and Payward are effectively endorsing federal derivatives oversight as the preferable framework for these products. Kalshi, a CFTC-regulated prediction market, and Coinbase, which operates a U.S. derivatives exchange, both have direct commercial interests in a clear federal pathway for event-based and perpetual contracts.
The Firms’ Stakes in a Federal Derivatives Framework
Coinbase has been expanding its derivatives footprint through its Coinbase Financial Markets unit, which received CFTC approval as a futures commission merchant. Kalshi has built its business on regulated event contracts and has pushed to list novel products under CFTC supervision. Payward, the parent of crypto exchange Kraken, has similarly sought U.S. regulatory clarity for advanced trading products.
The amicus brief, if accepted, would add industry weight to the CFTC’s position. It also signals that crypto platforms view perpetual futures as a growth vector that requires federal legitimacy rather than state-by-state or SEC-led oversight. The outcome could determine whether U.S. traders gain access to single-stock perps through regulated venues or are pushed further offshore.
What the Court’s Decision Could Unlock or Block
A ruling in favor of the CFTC would likely accelerate product listings and attract institutional participation, while a loss could embolden the SEC to assert control and slow approvals. The case also tests the CFTC’s willingness to defend its jurisdiction amid leadership changes and budget constraints.
For now, market participants are watching for the court’s response to the motion for leave. A decision on whether to accept the amicus brief, and any subsequent ruling on the underlying jurisdiction, will be the next concrete signal of how far U.S. regulators will allow single-stock perpetual futures to develop.
Sources: theblock.co