Capital Markets Alliance Challenges CFTC Approvals
On November 3, 2026, the Capital Markets Alliance filed a lawsuit against the Commodity Futures Trading Commission (CFTC) to overturn the regulatory approval of single-stock perpetual derivatives for KalshiEX, Coinbase Derivatives, and Bitnomial Exchange. As The Defiant Team at The Defiant reported, the trade group—whose members include Cboe and Citadel Securities—argues these contracts function as security-based swaps under the exclusive jurisdiction of the Securities and Exchange Commission (SEC).
The complaint, filed in the Southern District of New York as case 1:26-cv-09608, seeks emergency relief to prevent the contracts from being listed as security futures. The legal challenge targets product applications submitted on September 18. Because the CFTC's 45-day review period expired on November 2 without a rejection, CFTC Chairman Michael Selig confirmed on November 3 that the equity perpetuals "were deemed approved" under Regulation 40.3. The requested injunction would prevent the CFTC from permitting the contracts to be listed through alternative routes, including exchange self-certification. The alliance claims these products, which lack fixed expiration dates and rely on recurring payments to align with underlying stock prices, threaten to divert revenue from its members' traditional securities businesses.
Kalshi's Expanding Product Suite
The regulatory clash over equity perpetuals arrives as Kalshi rapidly diversifies its offerings, making it a focal point in the Kalshi vs Polymarket landscape. Beyond financial derivatives, the platform is heavily focused on the 2026 midterms. The Defiant Team at The Defiant noted that Kalshi recently introduced a Tradable Midterms Index combining 13 election events, which settles to a time-weighted Pyth index reading rather than a traditional race call.
Despite the intense focus on political markets, Kalshi's sports and multi-leg trading volumes continue to dominate its activity, attracting users who utilize prediction markets with API access for complex strategies. According to an InGame analysis cited by Dustin Gouker at The Event Horizon, Kalshi parlay takers have lost over $1 billion since the feature launched in September 2025. The platform has processed $165.6 billion in total volume on multi-leg trades, generating $7.1 billion in taker stakes. Before fees, Kalshi’s taker losses sit at $608.9 million, with parlay takers paying an additional $400 million in fees to cross the $1 billion threshold.