The Securities and Exchange Commission filed a court brief supporting the Commodity Futures Trading Commission in a dispute over perpetual contracts tied to individual U.S. stocks. The SEC rejected the Capital Markets Alliance’s claim that the CFTC overstepped its authority in approving the products, but said changes to the CFTC’s regulations are still pending.
Coinbase, Kalshi and Payward were granted permission to launch the contracts, with their approvals determined on Nov. 2; the source does not say they have launched them. Several trading firms filed in support of the CFTC. Better Markets and former SEC Commissioner Allison Herren Lee backed the alliance’s position; Better Markets argued the contracts should be regulated as securities swaps and warned of potential losses for retail traders.
