Coinbase, 5 Other Firms Back CFTC Authority Over US Single-Stock Perpetual Futures

Summary

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Major U.S. crypto and financial firms, including Coinbase, are backing the Commodity Futures Trading Commission's authority to regulate single-stock perpetual futures.

Cointelegraph reported on November 10 that six companies — Coinbase, Kalshi, Payward, DRW, Jump Trading and Paradigm — have applied to file an amicus brief supporting the CFTC's oversight of single-stock perpetual futures in the U.S.

An amicus brief is a document submitted by a third party that is not directly involved in a lawsuit to provide a court with legal views or relevant information. The filing reflects an effort by the industry to weigh in on the legal debate over regulatory authority for single-stock perpetual futures.

Single-stock perpetual futures are derivatives tied to the share price of a specific company but, unlike standard futures contracts, have no fixed expiration date. The structure applies the perpetual futures model widely used in crypto markets to individual stocks.

The participating companies include crypto exchanges, prediction-market platforms, trading firms and investment companies. They jointly argued that the CFTC's regulatory authority over the product should be recognized.

The report did not disclose specific details of the lawsuit or the arguments laid out in the amicus brief. The filing's effect on the court's eventual decision will become clearer as the case proceeds.