Coinbase, Kalshi and Kraken Back CFTC in Legal Battle

Major cryptocurrency exchanges and prediction market platforms are stepping into an ongoing legal battle involving the US Commodity Futures Trading Commission (CFTC). According to YahooStocks0, Coinbase, Kalshi, and Kraken Parent are backing the CFTC in its legal fight over stock perpetual futures.

The regulatory dispute centers around the offering of perpetual contracts on shares. The CFTC previously indicated that firms could offer perpetual futures on stocks, mirroring the products long traded on cryptocurrencies. However, a group backed by Citadel challenged the legality of these instruments. A federal judge subsequently ruled that while firms could continue their current operations, the regulator may have overstepped its authority.

Firms Seek Amicus Status

On November 9th, Coinbase, Kalshi, Kraken, along with DRW, Jump Trading, and Paradigm, formally asked permission to file a friend of the court brief in the proceedings. The coalition is joining the legal fight on the side of the CFTC to advocate that market participants should be permitted to offer these financial products.

Market observers note that the regulatory conflict highlights expanding battles over tokenized shares and prediction markets as traditional financial instruments increasingly intersect with blockchain infrastructure and alternative trading venues.

Key facts

• Coinbase, Kalshi, and Kraken Parent are backing the CFTC in a legal fight over stock perpetual futures.
• A group backed by Citadel challenged the legality of stock perpetual contracts.
• Coinbase, Kalshi, Kraken, DRW, Jump Trading, and Paradigm filed a request on November 9th to submit an amicus curiae brief.
• The legal dispute follows a judge's ruling that the CFTC may have overstepped its authority regarding stock perps.