Coinbase, Kalshi, Kraken parent Payward, DRW, Jump Trading and Paradigm sought permission to file a brief supporting the Commodity Futures Trading Commission in a lawsuit over its approvals of perpetual futures linked to individual US stocks. The Capital Markets Alliance Association argues that the contracts fall under securities law; the companies argue that the CFTC’s approach is lawful. The court has not decided which side is right or whether the products may remain available.
In a November 3 order, Judge Valerie Caproni denied the association’s request for an immediate halt. She indicated that it was likely to succeed on the statutory question, but had not shown the imminent, irreparable harm required for emergency relief. The denial was not a ruling that the approvals were lawful, and the judge has not yet decided whether to accept the companies’ proposed brief.
