Coinbase, Kalshi and the parent company of Kraken are throwing their weight behind the Commodity Futures Trading Commission in a legal dispute over stock perpetual futures. The three firms have joined the Capital Markets Alliance, which argues that these products fall under the jurisdiction of the Securities and Exchange Commission, not the CFTC.
The fight centers on whether stock perpetual futures — derivative contracts that track stock prices with no expiration date — should be regulated as securities or commodities. The CFTC has asserted authority over the products, but the alliance contends that the SEC is the proper regulator.
The alliance's argument
The Capital Markets Alliance, which includes Coinbase, Kalshi and the parent company of Kraken, filed a brief supporting the CFTC's position in the dispute. The group argues that stock perpetual futures are securities products and therefore belong under the SEC's watch. The alliance's involvement signals that major crypto and trading platforms have a stake in how these hybrid products are classified.
Kalshi, a prediction market platform, and Coinbase, the largest U.S. crypto exchange, have both been expanding into derivatives and event contracts. Kraken's parent company adds another significant player to the coalition. The alliance's legal filing does not mince words: it states that the CFTC's attempt to regulate stock perpetual futures oversteps its statutory authority.
Why the CFTC is involved
The CFTC has been moving to assert control over perpetual futures tied to equities, arguing that such contracts are commodity derivatives. The agency's stance has put it at odds with the SEC, which traditionally oversees securities-based products. The dispute has been simmering for months, with both agencies claiming jurisdiction over different aspects of the emerging market for perpetual contracts.
The CFTC's position is that stock perpetual futures are akin to commodity futures because they don't involve actual delivery of securities. The alliance disputes that logic, contending that the underlying asset — stocks — makes them securities by definition.
What's at stake for crypto platforms
For Coinbase, Kalshi and Kraken's parent, the outcome will determine which regulator oversees a fast-growing product line. Stock perpetual futures have gained traction among retail and institutional traders looking for leveraged exposure to equities without the need for traditional futures accounts. If the SEC wins jurisdiction, platforms would face stricter disclosure and compliance requirements. If the CFTC prevails, the products could continue under a more permissive regime.
The alliance's brief is the latest sign that crypto-native firms are increasingly willing to engage in regulatory turf battles. Coinbase has been vocal about its desire for clear rules, and Kalshi has fought its own regulatory skirmishes over event contracts. Kraken's parent company, which also owns the crypto exchange, has been expanding its footprint in traditional finance.
Next steps in the legal fight
The case is now before the courts, with the alliance's brief filed in support of the CFTC. A decision could come in the coming months, but no specific timeline has been set. The SEC has not publicly commented on the alliance's filing. For now, the three firms and their allies are waiting to see whether the judge sides with the CFTC's assertion of authority or the alliance's argument that the SEC should take the lead.
The dispute is one of several regulatory flashpoints between the two agencies. The outcome will shape not just stock perpetual futures but also how other hybrid products are classified. Coinbase, Kalshi and Kraken's parent have made their bet. The ball is now in the court's hands.
