Key facts
- The SEC filed a court brief supporting the CFTC in the CMA lawsuit over equity perpetuals.
- The CMA sued last week to overturn the CFTC's approval of equity perpetuals, arguing the agency exceeded its authority.
- Coinbase, Payward, Kalshi, DRW Holdings, Paradigm and Jump Trading filed a joint brief backing the CFTC.
- Better Markets and former SEC Commissioner Allison Herren Lee filed briefs supporting the CMA.
- Coinbase, Kalshi and Payward were granted permission on November 2 to launch perpetual contracts tied to U.S. stocks.
The Securities and Exchange Commission (SEC) filed a court brief on November 11, 2026, supporting the Commodity Futures Trading Commission (CFTC) in a lawsuit brought by the Capital Markets Alliance (CMA) over perpetual derivatives linked to individual U.S. stocks. The SEC's intervention highlights a growing divide between the two regulators over which agency should oversee these products.
The CMA sued last week to overturn the CFTC's approval of equity perpetuals, arguing that the CFTC exceeded its authority and failed to comply with the Administrative Procedure Act. The CMA also contended that the SEC's definition of derivatives encompasses these products and asked the court to "vacate the approvals." The SEC countered that the CFTC's regulatory changes are still pending and emphasized regular collaboration between the agencies. "The SEC's amicus brief addresses why that depiction—of a CFTC gone rogue, and an SEC gone missing—is mistaken," the agency said.
Several major trading and crypto companies, including Coinbase, Payward (parent of Kraken), Kalshi, DRW Holdings, Paradigm and Jump Trading, filed a joint brief supporting the CFTC. Coinbase, Kalshi and Payward were each granted permission to launch perpetual contracts tied to U.S. stocks on November 2. Opposition remains strong: Better Markets and former SEC Commissioner Allison Herren Lee filed briefs supporting the CMA. Better Markets argued that the contracts should be subject to securities laws, stating: "Although labeled by the CFTC and these trading platforms as 'perpetual futures,' these products are in fact securities swaps that are supposed to be regulated by the SEC with strong investor protections." The group also warned that such instruments could expose retail traders to significant losses, citing risks stemming from the 2008 financial crisis.