SEC Files Brief in Stock Perpetuals Lawsuit, Rejects ‘CFTC Gone Rogue’ Claim | Tilt

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SEC Files Brief in Stock Perpetuals Lawsuit, Rejects ‘CFTC Gone Rogue’ Claim

The Securities and Exchange Commission filed an amicus brief in the federal lawsuit over single stock perpetual futures, rejecting the Capital Markets Alliance Association’s portrayal of “a CFTC gone rogue, and an SEC gone missing.” The CME and Better Markets have also submitted briefs in the case alongside a coalition of trading and crypto firms that includes Coinbase, Kalshi, Kraken parent Payward, DRW, Jump Trading, and Paradigm.

The Capital Markets Alliance, whose members include Citadel Securities, Cboe, and the Healthy Markets Association, sued the Commodity Futures Trading Commission in New York federal court on Nov 3, hours after the agency cleared the no expiry equity contracts to trade on exchanges registered with both the CFTC and SEC. The plaintiff group argues the products are security based swaps subject to exclusive SEC jurisdiction, while the CFTC and supporting firms classify them as jointly regulated security futures under a 2000 law.

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From todaySEC Files Brief in Stock Perpetuals Lawsuit, Rejects ‘CFTC Gone Rogue’ Claim

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CFTC Authority Upheld
The court treats the SEC brief as strong evidence that the CFTC did not exceed its authority when approving stock perpetual futures. Coinbase and Kalshi continue trading while the lawsuit proceeds or is dismissed, reinforcing a coordinated SEC-CFTC framework for event-style equity derivatives.
Finance +0.5% · Technology +0.3%
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Joint Rulemaking Path
Rather than forcing a binary court outcome, the SEC and CFTC formalize shared standards for stock perpetual futures. This preserves the product category but subjects Coinbase, Kalshi, and future entrants to margin, disclosure, and market-surveillance conditions.
Finance +0.2% · Technology +0.2%
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Partial Legal Setback
The court accepts that the CFTC was not acting rogue but still finds procedural defects in the approval order. That outcome keeps the product category alive but forces the CFTC, Coinbase, and Kalshi to repair the administrative record.
Finance −0.6% · Technology −0.3%
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Oversight Fight Escalates
Even if the SEC brief weakens the rogue-regulator argument, the Capital Markets Alliance or allied market participants continue pressing the issue through appeals, congressional letters, or additional administrative challenges. The result is a longer period of uncertainty rather than an immediate shutdown.
Finance −0.2%

Each figure is the modeled move of the S&P 500 if it happens. For information only. Not investment advice.

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