CFTC Approves Perpetual Futures on Individual Stocks for Trading on U.S. Regulated Exchanges

CFTC Chairman Michael Selig announced on Tuesday that these contracts have been authorized under CFTC Regulation 40.3 and may be offered on exchanges registered not only with the CFTC but also with the Securities and Exchange Commission (SEC) for security futures trading.

Selig emphasized that introducing these contracts on regulated U.S. platforms will enable American traders to access perpetual futures under the protections of U.S. law instead of relying on overseas venues that are often unregulated or less secure.

Perpetual futures enable traders to speculate on the price of an asset without possessing the underlying security and without any expiration date on the contract. These instruments, commonly referred to as 'perps,' gained popularity starting in 2016 through the crypto exchange BitMEX.

Following a wave of regulatory filings in September, companies including Coinbase, Kalshi, and Payward (the parent firm of Kraken) via its Bitnomial platform, sought approval to offer these stock-linked perpetual futures. Shortly thereafter, OG.com submitted its own proposal for perpetual futures contracts designed for near-around-the-clock weekday trading.

These applications came on the heels of the CFTC's prior May approval for Bitcoin perpetual futures from Kalshi, along with regulatory exemptions that permitted Coinbase to offer access to certain crypto perpetual futures listed through a related foreign exchange.

Chairman Selig did not specify which exchanges will begin offering these stock perpetual futures nor did he provide a timetable for the commencement of trading.

Nearly three months earlier, former President Donald Trump announced that the CFTC was actively working to introduce Hyperliquid—a decentralized crypto exchange renowned for its perpetual futures—into the U.S. marketplace in full compliance with legal requirements. This statement was made during a White House event on August 19, although neither party had later released formal plans regarding its U.S. launch.

The CFTC’s approval process for perpetual futures has encountered legal obstacles. In June, the Chicago Mercantile Exchange (CME Group) sued the agency, contesting the approval of crypto perpetual futures and arguing these contracts should be classified as swaps rather than futures. CME claimed that the CFTC overstepped its regulatory authority. The distinction matters as swaps are subject to different, often stricter rules for reporting, margins, and registration, whereas futures operate under an existing exchange framework.

In response, the CFTC filed a motion to dismiss the lawsuit in September, arguing that CME lacked legal standing because it could not demonstrate financial harm and was itself capable of listing similar contracts.

This development introduces perpetual futures on individual stocks into the regulated U.S. market, providing traders with greater access and legal protections while signaling the continued blending of cryptocurrency-derived financial instruments with traditional securities trading. It also highlights ongoing regulatory debates around how derivatives should be classified and governed.

Why it matters: Allowing perpetual futures on equities under U.S. regulation offers American traders safer, more accessible ways to engage in leveraged trading without holding the underlying stock. These approvals mark a major step in integrating crypto-originated derivative products into mainstream financial markets, despite regulatory challenges from established entities concerned about jurisdiction and oversight.

why

Allowing perpetual futures on equities under U.S. regulation opens new avenues for traders to access leveraged derivatives safely, reflecting an evolving integration of crypto market innovations with traditional finance amid ongoing regulatory scrutiny.