SEC Supports CFTC's Intervention in Stock Perpetual Derivatives Regulatory Dispute

The U.S. Securities and Exchange Commission (SEC) has submitted a court opinion regarding the regulatory jurisdiction dispute over stock perpetual derivatives, supporting the Commodity Futures Trading Commission (CFTC). The industry organization Capital Markets Alliance has sued the CFTC, seeking to overturn its approval of such products. In its opinion, the SEC refuted CMA's claim that the CFTC was "overstepping" its authority, stating that the CFTC's new regulatory changes must be reviewed by the SEC, and that the SEC and CFTC often collaborate, which is crucial for regulating stock perpetual contracts. Following CMA's lawsuit, several crypto companies, including Coinbase, Kraken's parent company Payward, and Kalshi, submitted a joint opinion opposing CMA, with three of them having submitted applications for listing stock perpetual contracts, which were deemed approved on November 2. Better Markets and others argue that such products should be regulated by the SEC.

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