Single-stock perpetual contracts, legal classification dispute over CFTC approval

Better Markets filed an amicus brief on November 10 urging a federal court to classify single-stock perpetual futures as security-based swaps, backing the Capital Markets Alliance Association's (CMAA) request for a preliminary injunction against the CFTC's treatment of the contracts as security futures. The brief was joined by a former acting SEC chair and SEC commissioner alongside a Harvard Law School professor. The dispute centers on which regulatory regime governs the products, since classification determines the applicable oversight framework and investor-protection rules for retail participants. The CFTC's approach is being challenged by the CMAA, with the outcome set to shape how single-stock perpetuals are supervised in U.S. markets. What to watch next is the court's ruling on the preliminary injunction and whether it forces a reclassification of the contracts.