Summary
- Following its approval of crypto perps a few months prior, the U.S. Commodity Futures Trading Commission advanced toward stock perps, only to face an immediate court challenge as soon as the announcement was made.
- An entity named the Capital Markets Alliance initiated a federal lawsuit asserting that the updated policy from the CFTC authorized trading activities that properly fall under the authority of the Securities and Exchange Commission.
A fresh association speaking for traditional financial institutions stated that it filed a lawsuit on Tuesday against the Commodity Futures Trading Commission to halt the regulator’s endorsement of single-stock perpetual futures.
These stock perps are designed to function similarly to the commission’s recent framework for crypto perps, yet the Capital Markets Alliance submitted its legal complaint on the exact day the watchdog authorized open-ended equity futures contracts. Even though this industry group lacks an extensive track record, it reported support from prominent exchanges, broker-dealers, and investment firms, such as Cboe and Citadel Securities.
Its legal action, brought in the U.S. District Court for the Southern District of New York, aims to strike down the directive. The complaint claims these financial instruments function as securities-based swaps governed by the Securities and Exchange Commission, and argues that the CFTC breached the Administrative Procedure Act by omitting justifications for the policy and its inconsistency with a prior agency position.
Upon unveiling the commission’s fresh guidelines, CFTC Chairman Mike Selig noted in a declaration on Tuesday that the initiative “builds on that milestone by extending the availability of the perpetual futures contract instrument in the U.S. beyond digital commodities and into traditional securities.” This decision arrived roughly five months after the regulatory body initially paved the way for bitcoin perps, aiming to pull a booming international market back into the United States.
The earlier CFTC initiative regarding crypto perps likewise prompted a lawsuit from CME Group. The firm similarly argued that perpetual futures contracts lack expiration dates, meaning they do not qualify as true futures contracts. CME maintains that these instruments actually operate as swaps, which require distinct regulatory oversight.
The CFTC did not immediately reply to an inquiry for comment concerning the new legal challenge.
This litigation appears to mark the CMA’s inaugural major initiative. A representative informed CoinDesk that the coalition’s roster features Cboe, Citadel Securities, and the Healthy Markets Association.
The regulatory authority’s updated position likewise drew condemnation from the American Securities Association on Tuesday. Chris Iacovella, president and CEO of the ASA, remarked in a statement that “by labeling stock perps as security futures, the CFTC sidestepped the SEC’s jurisdiction and Congress’ ban on selling security-based swaps to retail investors.”
Originally published at https://www.coindesk.com/policy/2026/11/03/cftc-gets-into-legal-clash-over-stock-perps-after-having-cleared-path-for-crypto-version.
