The Capital Markets Alliance, which includes the Healthy Markets Association, argues that the CFTC violated the Administrative Procedure Act by approving these contracts without sufficient justification or consideration of investor risks. Cboe CEO Craig Donohue stated that the regulator’s move threatens established market rules and undermines investor protections mandated by Congress. Chris Iacovella, CEO of the American Securities Association, echoed this sentiment, accusing the agency of bypassing the SEC to introduce products that could expose retail investors to significant, unchecked leverage.
In section Cryptocurrency
Wall Street Giants Challenge CFTC Over Stock Perpetual Futures
A coalition backed by Cboe and Citadel Securities has launched a federal lawsuit to block the CFTC from permitting perpetual futures on U.S. stocks. The legal challenge, filed in New York, asserts that these instruments are effectively security-based swaps and fall under the SEC’s regulatory jurisdiction rather than the CFTC’s.
Conversely, the CFTC maintains that the contracts are permissible under existing federal derivatives rules and the Commodity Futures Modernization Act. Chairman Michael Selig defended the decision, suggesting that bringing these products into regulated U.S. markets provides a safer alternative to offshore venues. A commission spokesperson characterized the lawsuit as a disruptive effort to stifle innovation. The outcome of this case could reshape the competitive landscape for platforms like Kalshi and Coinbase, which have sought to bring crypto-style perpetual trading—characterized by no expiration dates—into the domestic equity market.
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