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CFTC Chair Michael Selig approved US exchanges offering perpetual futures tied to individual stocks, opening the products to US trading for the first time. The contracts have no expiration date and let traders take positions on price movements without owning the underlying shares. Selig said the products can support risk management and price discovery, subject to applicable law.
Why it matters
The approval extends a regulatory path the CFTC has already opened for some perpetual futures, including Bitcoin contracts listed by KalshiEX and Coinbase after agency staff approval. In June, the commission also sought public comment on crude oil perpetuals and round-the-clock trading.
Demand for perps has grown alongside the appeal of markets that trade continuously. During a recent supply shock tied to the war involving the US, Israel and Iran, traditional oil futures markets were closed over the weekend while platforms such as Hyperliquid continued operating around the clock, shifting some trading activity onchain.
Market impact
The decision creates a route for US platforms to offer stock-linked perps, but it does not mean every exchange can list them without meeting applicable requirements. Selig said both the CFTC and SEC would oversee the contracts, reflecting their respective roles in US financial markets.
The move also lands amid President Donald Trump's interest in bringing Hyperliquid into the US. For derivatives platforms, the key development is a potential regulated US market for stock perps, with oversight shared between the two agencies.
Frequently asked questions
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What did the CFTC approve for US exchanges?
CFTC Chair Michael Selig approved US exchanges offering perpetual futures tied to individual stocks, allowing the products to trade in the US for the first time.
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How do individual-stock perpetual futures work?
They are futures contracts with no expiration date. Traders can take positions on a stock's price movement without owning the underlying shares.
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Which agencies will oversee US stock perpetual futures?
Selig said both the CFTC and SEC would oversee the contracts, reflecting their complementary roles in US financial markets.
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What earlier steps did the CFTC take on perpetual futures?
CFTC staff previously greenlit US Bitcoin perpetual futures listings by KalshiEX and Coinbase. In June, the agency also sought comment on crude oil perps and 24/7 trading.
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Why has 24/7 trading drawn attention to perpetual futures?
During a recent oil-market supply shock, traditional futures markets were closed over the weekend while platforms such as Hyperliquid continued trading around the clock, with much activity moving onchain.
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