UPDATE: Capital Markets Alliance names Coinbase and Kalshi in CFTC lawsuit
CIE News ·
Update to UPDATE: Citadel Securities-backed group sues CFTC over stock perps jurisdiction
Based on reporting by crypto.news; not yet independently confirmed.
Capital Markets Alliance has named Coinbase, Kalshi, and Bitnomial in a lawsuit challenging the CFTC's perpetual futures approvals, seeking an emergency injunction in federal court.
Capital Markets Alliance filed a lawsuit in the U.S. District Court for the Southern District of New York targeting the Commodity Futures Trading Commission alongside Coinbase, Kalshi, and Bitnomial as defendants. As previously reported, a Citadel Securities-backed group sued the CFTC over stock derivatives jurisdiction, and the new filing under Docket No. 1:26-cv-09608 seeks an emergency injunction and a full vacatur of the agency's policy.
The alliance, supported by Cboe Global Markets, Citadel Securities, and the Healthy Markets Association, argues that the CFTC breached the Administrative Procedure Act by issuing an arbitrary policy change without evaluating market risks. The plaintiffs contend that single-stock perpetual contracts are security-based swaps under the authority of the Securities and Exchange Commission rather than security futures governed by the CFTC.
A CFTC spokesperson called the legal action troubling interference in regulated markets, while the SEC declined to comment on the litigation according to crypto.news. The legal action is pending preliminary injunction hearings.
Key facts
- Docket No. 1:26-cv-09608
- Coinbase and Kalshi sued
- Emergency injunction sought
- Pending injunction hearings
Read the original at crypto.news