CoinDesk
The CFTC has cleared the way for perpetual futures tied to individual stocks to trade on registered U.S. exchanges for the first time. CFTC Chair Michael Selig said the contracts were deemed approved under existing security futures rules and will face joint CFTC and SEC oversight. The move brings a crypto-style product into regulated U.S. markets, but the agency has not identified which exchanges will list the contracts or which stocks will be available.
Why it matters
Perpetual futures let traders speculate on price without owning the underlying asset. Unlike traditional futures, they have no expiration date and often use leverage, which can magnify both gains and losses. The contracts have become a major part of crypto trading, including on offshore venues and decentralized platforms such as Hyperliquid.
Selig described the U.S. framework as a regulated alternative to offshore venues. The approval also advances Washington's effort to bring perps under domestic oversight. Stock-based derivatives have faced regulatory hurdles because they fall under both securities and commodities laws. The framework established by the Commodity Futures Modernization Act of 2000 provides for joint oversight, and the SEC and CFTC have agreed to coordinate more closely on products that cross their jurisdictions.
Market impact
The move opens a path for equity perps on registered U.S. exchanges, but it does not establish where trading will begin or which stocks will be covered. Those details will determine how quickly the new market develops.
The expansion also puts U.S. regulators closer to a market model that has drawn interest from traditional finance. Intercontinental Exchange, parent of the New York Stock Exchange, recently invested in tradeXYZ, a builder of perpetual futures markets on Hyperliquid. The CFTC had earlier approved the first bitcoin perpetual futures contract on a regulated U.S. exchange.
Frequently asked questions
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Which U.S. regulators will oversee stock perpetual futures?
The contracts will be subject to oversight by both the CFTC and the SEC under existing security futures rules.
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How do perpetual futures differ from traditional futures?
Perpetual futures have no expiration date. They often use leverage and let traders speculate on an asset's price without owning it.
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Which exchanges and stocks will offer the new contracts?
The CFTC has not identified the exchanges that will offer equity perps or the stocks available at launch.
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Why have equity perpetuals faced regulatory hurdles?
Stock-based derivatives fall under both securities and commodities laws, requiring coordination between the SEC and CFTC.
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What connects the approval to Hyperliquid and Wall Street?
Hyperliquid helped popularize onchain perps, and ICE, the NYSE's parent company, recently invested in tradeXYZ, a builder of perpetual futures markets on Hyperliquid.
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