A group of crypto exchanges, prediction markets and trading firms has joined a court battle over which regulator can oversee a new type of stock derivative. Coinbase, Kalshi, Payward, DRW, Jump Trading and Paradigm are seeking to tell a federal judge that the Commodity Futures Trading Commission has authority over single-stock perpetual futures.
The six firms sought permission to file an amicus brief around November 9-10, 2026. Payward is Kraken’s parent company.
What the lawsuit is about
The Capital Markets Alliance Association brought the case. The trade group filed suit on November 3, 2026, in case 1:26-cv-09608.
The suit targets applications to list single-stock perpetual futures. On September 18, 2026, three exchanges submitted the applications: KalshiEX, Coinbase Derivatives and Bitnomial Exchange.
A perpetual future is a derivative contract with no expiration date. Unlike a traditional future, which has a settlement date, a perp continues until the trader chooses to close it.
The Capital Markets Alliance argues that these contracts, which have no expiration date, are actually security-based swaps. That classification matters because security-based swaps are regulated by the Securities and Exchange Commission rather than the CFTC. The group also argues that the products restrict retail trading rights.
How the approvals happened
The procedural schedule is tight. The exchanges filed in mid-September, triggering a 45-day review period at the CFTC.
No objections were raised during that period. The approvals were deemed valid on November 2, 2026, effectively because the clock ran out, rather than following a dramatic vote.
The lawsuit was filed the next day. Also on November 3, a federal judge rejected the plaintiffs’ request for a temporary restraining order.
The denial does not resolve the underlying jurisdictional question. It means only that the court declined to immediately halt the process while the case moves forward.
The amicus filing came roughly a week after the suit. An amicus, or “friend of the court” brief, allows parties not directly involved in a case to present arguments for the judge to consider. The six firms must first obtain the court’s permission to file it.
Why these six firms care
The coalition’s membership is notable. Coinbase and Kalshi are not neutral observers: their affiliated exchanges, Coinbase Derivatives and KalshiEX, are two of the three applicants whose proposed listings are being challenged.
Payward offers Kraken’s perspective as a major crypto exchange operator. DRW and Jump Trading are established trading firms, while Paradigm is a crypto-focused investment firm.
The CFTC approved Bitcoin perpetual futures in May 2026, before the effort expanded to equity perps.
Source: cryptobriefing.com. Adapted by NBTC.
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