Arthur Hayes ‘flattered’ by Coinbase defense of US stock perpetual futures

BitMEX co-founder Arthur Hayes said he was “flattered” by Coinbase‘s legal defense of stock perpetual futures, a product his exchange pioneered a decade ago.

Hayes remarked that Coinbase’s support for the Commodity Futures Trading Commission (CFTC) in a federal court case over the contracts was a form of “imitation.” The Capital Markets Alliance Association (CMAA) is suing, arguing the perpetual futures should be regulated as security-based swaps with stricter retail rules.

Coinbase and five other firms submitted a brief opposing the CMAA’s request to block trading in the products. The U.S. Securities and Exchange Commission also reportedly filed a brief opposing a temporary halt, stating it is reviewing the exchanges’ listing rules.

A U.S. district judge previously denied the CMAA’s request for a temporary restraining order, finding the group had not shown likely irreparable harm but was likely to succeed on its claim that the CFTC exceeded its authority.