Coinbase, Kalshi and Payward back CFTC in stock perpetuals case, a test for prediction markets

Coinbase, Kalshi and Payward have asked a court for permission to file an amicus brief in support of the Commodity Futures Trading Commission (CFTC), according to The Block. The brief would defend the agency's authority to regulate single-stock perpetual futures in the United States. The filing is a notable development for prediction markets and the wider derivatives industry, because it shows firms from different corners of the sector lining up on the same side of a jurisdictional dispute.

What happened

The three companies are not parties to the lawsuit. They have asked the court for leave to submit a brief as outside supporters, which is the usual route for an amicus filing. The request has been made, and the court has not been reported to have ruled on it.

The Block's report describes the companies as crypto firms and says the brief would back the CFTC's role in overseeing single-stock perpetual futures. A separate headline from another outlet says the Securities and Exchange Commission (SEC) also backs the CFTC, and frames the matter as a legal fight facing Coinbase and Kalshi over US stock perpetuals. The source material does not spell out the full set of parties or the specific claims, so those details remain unclear.

Why it matters

Perpetual futures are derivatives with no fixed expiry date. Applying that structure to individual company shares raises a long-running question in US financial regulation: which agency is responsible when a product has features of both securities and futures.

That question reaches beyond one product. Kalshi operates in the event-contract space, and prediction markets as a category have repeatedly been shaped by arguments over which regulator has authority and how far it extends. A court ruling on the CFTC's reach over stock-linked perpetuals could inform how other novel contracts are treated, though the source does not say how.

It is also worth noting that Coinbase, Kalshi and Payward are backing the agency rather than challenging it. The reporting does not explain their reasoning, and this article does not speculate about it.

What to watch next

The first step is whether the court grants permission for the brief to be filed. If it does, the content of the brief will show how the companies frame the CFTC's authority and what arguments they offer the court.

Readers should also watch for further filings from the SEC, given the reported support for the CFTC, and for any decision that clarifies how responsibility is divided between the two agencies for products tied to single stocks.

Until the court acts, the outcome is open. Court proceedings can change direction, and nothing in the reporting indicates how the judge is likely to rule.