--- title: "Coinbase Backs CFTC in Court Fight Over US Stock Perpetual Futures" description: "A coalition of six firms opposed an injunction targeting equity perpetuals, as the SEC separately reviewed exchange listing rules." url: https://basisdesk.news/news/coinbase-backs-cftc-us-stock-perpetuals-lawsuit published: 2026-11-13T13:51:34.934Z modified: 2026-11-13T13:51:34.934Z section: Regulation & Policy author: Basis Desk Newsroom (AI-generated, source-verified) sentiment: neutral tickers: [BTC] tags: [coinbase, cftc, sec, derivatives, perpetuals, litigation] license: Quote with attribution to Basis Desk (basisdesk.news). Not financial advice. --- # Coinbase Backs CFTC in Court Fight Over US Stock Perpetual Futures A coalition of six firms opposed an injunction targeting equity perpetuals, as the SEC separately reviewed exchange listing rules. ## At a glance - **What happened:** Coinbase and five other firms filed a brief backing the CFTC against a legal challenge seeking to halt US stock perpetual futures trading [1]. - **Why it matters:** The case challenges CFTC authority over non-expiring equity derivatives and could alter how retail platforms offer perpetual products [1]. - **Who is affected:** The CFTC, SEC, Coinbase, Kalshi, traditional equity exchanges, and retail derivatives traders [1]. - **What's next:** Continued district court proceedings regarding CMAA's claims and SEC conclusions regarding exchange listing rules [1]. - **Status:** court-ruling - **Primary source:** [Arthur Hayes ‘flattered’ as Coinbase backs US stock perps](https://cointelegraph.com/news/arthur-hayes-coinbase-us-stock-perps-cftc?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound) — cointelegraph.com ## Key points - Coinbase and five companies filed a brief supporting the CFTC against CMAA's bid to halt US stock perpetual futures trading [1]. - Judge Valerie Caproni denied a temporary restraining order on Nov. 3, but found CMAA likely to show the CFTC exceeded its statutory powers [1]. - The SEC filed an opposing brief stating it is reviewing exchange listing rules and has not settled whether the products are security-based swaps [1]. ## Editorial remark - **Context:** The lawsuit follows the introduction of perpetual futures on US equities, an instrument structure originated in crypto derivatives by BitMEX in 2016 [1]. - **Impact:** Exchanges offering stock perpetual contracts, retail derivatives traders, and the CFTC face regulatory boundary challenges between futures and security-based swaps [1]. - **Watch:** District court determinations on CMAA's claims regarding CFTC authority and the SEC's formal review of exchange contract listing rules [1]. Coinbase and five other firms filed an amicus brief opposing a preliminary injunction against perpetual futures linked to individual US equities [1]. The court accepted the filing on Tuesday in an ongoing lawsuit filed by the Capital Markets Alliance Association (CMAA) against the Commodity Futures Trading Commission (CFTC) [1]. CMAA argued that stock perpetual futures should be classified as security-based swaps, a regulatory category subject to stricter limits on retail participation [1]. In a Tuesday filing, CMAA alleged that the CFTC approved the contracts without sufficiently clarifying its decision or addressing open regulatory matters [1]. CMAA cited roughly $375 million in reported 24-hour notional trading volume on Kalshi's stock perpetual contracts shortly following launch, arguing that the products divert business from conventional equity markets [1]. On Nov. 3, US District Judge Valerie Caproni denied CMAA's bid for a temporary restraining order, determining the group had not demonstrated irreparable harm, though she indicated CMAA was likely to succeed on its argument that the CFTC exceeded its statutory authority [1]. ## Regulatory Scrutiny on Contract Expiry The Securities and Exchange Commission (SEC) also filed a proposed brief opposing CMAA's request to pause trading, confirming it is reviewing exchange rules governing the contracts while leaving open whether the instruments constitute security futures or security-based swaps [1]. Wojciech Kaszycki, strategy adviser to BTCS SA, stated that the absence of a fixed expiration or delivery date complicates treating perpetuals as futures under traditional definitions of future delivery [1]. Kaszycki cautioned that an adverse ruling against the CFTC could shift trading toward offshore and decentralized platforms rather than extinguish market demand [1]. Former BitMEX chief executive Arthur Hayes remarked that he was "flattered" by Coinbase's legal defense of stock perpetuals a decade after BitMEX introduced crypto perpetual swaps in 2016 [1]. ## FAQ **What is the legal issue in the CMAA lawsuit against the CFTC?** The CMAA argues that stock perpetual futures should be classified as security-based swaps subject to strict retail trading limits, alleging the CFTC exceeded its authority by permitting them [1]. **What position did the SEC take in the court proceedings?** The SEC opposed CMAA's requested trading halt, stating it is actively reviewing exchange rules for listing the contracts while leaving open their statutory classification [1]. ## Sources 1. [Arthur Hayes ‘flattered’ as Coinbase backs US stock perps](https://cointelegraph.com/news/arthur-hayes-coinbase-us-stock-perps-cftc?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound) — cointelegraph.com, 2026-11-13 --- Basis Desk Newsroom · AI-generated, source-verified · https://basisdesk.news/about/how-we-use-ai