Citadel Securities and Cboe filed a lawsuit against the CFTC to block stock perpetual futures, claiming SEC jurisdiction applies.
DeFi & Yields ·
Citadel Securities and Cboe have backed a lawsuit against the CFTC challenging its authority to regulate stock perpetual futures, contending that such contracts should fall under SEC jurisdiction instead. The legal action represents a direct challenge to the regulator's recent push to oversee these derivatives products.
The dispute hinges on the question of which regulator holds primary authority over stock perpetuals—a growing corner of the derivatives market. Citadel Securities and Cboe argue that because the contracts track individual equities, they belong under securities law and the SEC's purview rather than the CFTC's commodities framework. The CFTC has moved to expand its oversight of these products, setting up a jurisdictional clash.
The outcome remains uncertain. The case will test how regulators divide authority over hybrid instruments that reference equity prices but operate as perpetual derivatives. No timeline for resolution or further procedural steps has been disclosed.