A Dispute Over Regulation of Perpetual Futures on Stocks Erupts in the US

On November 3, 2026, the U.S. Commodity Futures Trading Commission (CFTC) announced the potential launch of perpetual contracts on individual stocks on regulated platforms. Applications from KalshiEX, Coinbase Derivatives, and Bitnomial were approved a day earlier. The decision is being contested in federal court in New York.

Why the Dispute Over Contract Classification Arose

Perpetual contracts allow for profit or loss from changes in stock prices without owning the actual stock. They have no set expiration date, and periodic payments between participants (funding) help keep the contract price close to the stock's value.

The CFTC considers them futures on securities under joint oversight by the CFTC and SEC. The Capital Markets Alliance Association disagrees: in its view, the absence of a term and transfer of stocks aligns the instruments more closely with securities swaps, which are subject to different rules.

What the Court Decided and Who Supports Each Side

On November 3, Judge Valerie Caproni refused to urgently suspend the approvals: the plaintiffs did not demonstrate the threat of imminent irreparable harm. However, the judge preliminarily found their argument about the possible lack of CFTC authority to be justified. A final decision on the case has yet to be made.

Coinbase, Kalshi, Payward, DRW, Jump Trading, and Paradigm requested court permission to present arguments in support of the CFTC. The organization Better Markets, on the other hand, expressed concerns about risks to retail investors, including forced liquidations.

What Risks Are Associated with a 15.5% Margin

According to Kalshi's published rules, the minimum margin requirement is 15.5% of the position's value. With a deposit of $1,000, this corresponds to a position of approximately $6,452 – a leverage of about 6.45×. A 5% drop in the underlying stock would mean a loss of approximately $323, or 32% of the initial margin, excluding fees and funding.

The access of a specific client depends on the broker and platform rules. The CFTC's announcement does not mean such contracts are automatically available to all American investors.