Armstrong says US single-stock perpetual futures will launch despite lawsuit

what happened

Stocktwits reports that Coinbase CEO Brian Armstrong said on Friday that established market players will not be able to stop the launch of equity perpetual futures in the United States. In an X post previewing remarks for CNBC, which were cut short, he also hinted that the Coinbase Pro platform could return.

Armstrong credited SEC Chairman Paul Atkins and CFTC Chairman Michael Selig for setting aside jurisdictional rivalry to bring the product to American investors. Coinbase applied to the CFTC in September for approval of contracts on individual U.S. stocks, and Armstrong noted that such instruments already trade outside the country.

The approval faces a legal challenge. The Capital Markets Alliance Association, whose members include Cboe and Citadel Securities, argues these contracts are security-based swaps that belong under SEC oversight. Judge Valerie Caproni rejected the group's emergency bid for a temporary restraining order earlier this month, though she said the group is likely to succeed on its central jurisdiction argument. The group is still pursuing a preliminary injunction.

why it matters

The outcome will determine whether crypto exchanges can offer equity derivatives without SEC involvement. If the court sides with the plaintiffs, oversight of such products would shift to the SEC, changing the terms under which they can launch. According to Stocktwits, Coinbase shares closed Friday down more than 2% and slipped over 1% in overnight trading.

market impact

Coinbase shares: the jurisdiction lawsuit will determine how quickly stock futures can start trading

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