A US federal judge denied a request for a temporary restraining order that sought to pause the CFTC's approval for Kalshi, Bitnomial, and Coinbase Derivatives to launch single-stock perpetual contracts in the United States. Judge Valerie Caproni of the Southern District of New York ruled that plaintiffs Capital Markets Alliance — whose members include Cboe and Citadel Securities — failed to demonstrate imminent irreparable harm to their members.
However, the court signaled support for the plaintiffs' core legal argument, finding it likely that the CFTC overstepped its authority. The ruling noted that the contracts in question appear not to meet the definition of "security futures" and are closer to swaps regulated by the SEC. The CFTC must respond to the plaintiffs' motion for a preliminary injunction by Nov. 6, with a reply due from the plaintiffs by Nov. 10.
US Court Denies Temporary Restraining Order to Pause Single-Stock Perpetual Contracts
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