UPDATE: Judge refuses emergency halt on stock perps but questions CFTC power
CIE News ·
Update to UPDATE: Capital Markets Alliance names Coinbase and Kalshi in CFTC lawsuit
Based on reporting by crypto.news; not yet independently confirmed.
A federal judge rejected an emergency bid to halt stock perpetual futures trading, though she found plaintiffs likely to prove the CFTC exceeded its authority.
U.S. District Judge Valerie Caproni denied an emergency request by the Capital Markets Alliance Association to halt stock perpetual futures trading on Kalshi, Coinbase Derivatives, and Bitnomial, according to court documents reported by bitcoinmagazine.com. As previously reported, the alliance filed suit challenging the Commodity Futures Trading Commission's approval of the contracts. While denying the temporary restraining order because the plaintiffs failed to show immediate and irreparable harm, the judge noted that the challengers are likely to succeed on claims that the CFTC overstepped its legal boundaries.
In her assessment, Judge Caproni observed that the perpetual instruments lack the future delivery component required for security futures and instead appear to fit the definition of swaps subject to Securities and Exchange Commission oversight, crypto.news reported. The ruling leaves the products active on the exchanges while the court weighs a separate preliminary injunction request. Opposition filings from the defendants are due on November 6, 2026, followed by the alliance's reply on November 10, 2026.
Key facts
- TRO request denied
- Stock perps remain active
- CFTC authority questioned
- Next court filings due Nov 6
Read the original at crypto.news