Judge allows stock perpetual futures trading while challenging CFTC authority

Stock perpetual futures will continue trading on Kalshi, Coinbase Derivatives, and Bitnomial after US District Judge Valerie Caproni denied an emergency bid to halt them on November 3, 2026. Bitcoin Magazine reported that the judge denied the temporary restraining order following a teleconference with the involved parties. Gaming America also reported that the judge permitted trading to go on, while finding that the Commodity Futures Trading Commission likely lacked the legal power to approve the products. [1][6][8]

The legal challenge comes immediately after the regulator moved to permit the instruments. Decrypt reported that the CFTC cleared stock perpetual futures and was sued on the same day. CryptoRank and The Coin Republic both reported that the commission classified United States equity perpetual futures as security futures products, while Yahoo Finance and Bitcoin News reported that the CFTC cleared crypto-style perpetual futures for stock traders. [2][3][4][5][7]

The Wall Street-backed challengers behind the lawsuit are likely to succeed on their core legal argument, according to Bitcoin Magazine. The publication reported that a group backed by Cboe and Citadel Securities is likely to prove the regulatory agency exceeded its legal authority when approving the stock derivative products. [1][6]

Kalshi is a Manhattan-based prediction market platform launched in July 2021 that allows individuals to trade on future outcomes including economic indicators, legislative results, and sports betting. As FTMQ Crypto reported earlier, the CFTC previously proposed rules in October 2026 to classify certain event contracts as swaps to secure regulatory authority over prediction platforms such as Kalshi under federal derivatives laws. [9][11]