CFTC faces lawsuit after allowing perpetual futures trading on U.S. stocks

A group backed by Cboe and Citadel Securities has sued the CFTC to block single-stock perpetual futures, arguing that the products fall under SEC jurisdiction. Summary Cboe and Citadel Securities-backed Capital Markets Alliance has sued the CFTC over single-stock perpetual futures approvals. The lawsuit argues that single-stock perpetual contracts qualify as security-based swaps under SEC jurisdiction. The CFTC maintains that registered exchanges can offer the contracts under existing federal derivatives rules. The legal challenge comes as cryptocurrency trading platforms seek access to traditional U.S. equity derivatives markets. Reuters reported that the Capital Markets Alliance filed the lawsuit in New York federal court on November 3, hours after the regulator cleared the contracts for U.S. trading. The group wants the court to overturn the approvals and prevent the CFTC from allowing the products to trade while litigation continues. The lawsuit brings established Wall Street firms into a growing dispute over perpetual futures, which have become popular on cryptocurrency trading platforms. Companies including Kalshi and Coinbase have been pursuing similar products in the regula...