Judge Lets Stock Perpetual Futures Keep Trading but Says CFTC Likely Overstepped Its Authority
By Micah Zimmerman
AI summary of the source article
A U.S. federal judge denied an emergency request to halt stock perpetual futures trading on Kalshi, Coinbase Derivatives, and Bitnomial. However, the judge noted challengers are likely to prove the CFTC overstepped its statutory authority.
Why it matters
Judge Caproni wrote that the agency’s actions “seem to represent a major disruption to the equities market.”
Key facts
- Judge Valerie Caproni denied a temporary restraining order sought by the Capital Markets Alliance Association against the CFTC.
- The judge stated the perpetual contracts appear to be swaps under SEC jurisdiction rather than futures under CFTC authority.
- The ruling leaves approvals intact for now, allowing platforms like Kalshi to continue listing single-stock perpetual futures.
Source excerpt · Bitcoin Magazine
Bitcoin Magazine Judge Lets Stock Perpetual Futures Keep Trading but Says CFTC Likely Overstepped Its Authority A federal judge refused to halt stock perpetual futures on Kalshi, Coinbase Derivatives and Bitnomial but found a Cboe- and Citadel Securities-backed group likely to prove the CFTC exceeded its authority. This post Judge Lets Stock Perpetual Futures Keep Trading but Says CFTC Likely Over…