Coinbase, Kalshi, Payward Back CFTC in Single-Stock Futures Lawsuit

single-stock futures lawsuit — Major crypto firms Coinbase, Kalshi, and Payward have moved to support the Commodity Futures Trading Commission in a key lawsuit over its authority to regulate single-stock perpetual futures contracts.

The companies filed a motion for leave to submit an amicus brief in the U.S. District Court for the Northern District of Texas. The brief would defend the CFTC’s power to oversee these derivatives products, which are cash-settled contracts that track the price of individual stocks without an expiration date.

The legal action stems from a challenge by the National Association of Manufacturers and the Chamber of Commerce, who argue the CFTC overstepped its authority by allowing the trading of such contracts. The crypto firms’ intervention highlights the industry’s vested interest in clear regulatory boundaries for novel financial instruments that share characteristics with crypto derivatives.

Their support for the CFTC’s position suggests a preference for the agency’s oversight framework, which many in crypto view as more favorable than that of the Securities and Exchange Commission. The court’s decision on whether to accept the amicus brief, and the ultimate outcome of the lawsuit, could influence the regulatory landscape for crypto-adjacent derivatives.