The Commodity Futures Trading Commission said Tuesday that perpetual futures tied to individual stocks can begin trading on CFTC-registered U.S. exchanges, the first time the crypto-market staple has been cleared for traditional equities.
Perpetual futures are derivatives that track an asset's price but carry no expiration date, letting traders hold leveraged positions indefinitely as long as they meet margin and funding requirements. Until now, they have been largely off-limits to U.S. traders, who Selig said had otherwise had to use offshore platforms.
Chairman Michael Selig framed the decision as the latest step in a campaign to bring perpetual products onshore. "In my inaugural remarks, I directed the CFTC to use the tools at its disposal to onshore perpetual derivative products so that they can flourish in the U.S., subject to appropriate safeguards," he said. Bringing the products into regulated markets ensures American investors can access them within the CFTC's regulatory framework rather than on often unregulated offshore venues, he argued.
The contracts were deemed approved as security futures products under the Commodity Futures Modernization Act of 2000, placing them under joint CFTC and SEC oversight. Selig credited a memorandum of understanding the two agencies signed in March with ending the jurisdictional limbo that SEC Chairman Paul Atkins said had stranded such products in a regulatory "no man's land."
The approval builds on the CFTC's earlier clearance of the first true Bitcoin perpetual futures on a regulated U.S. exchange, which the agency approved for Kalshi earlier this year. Selig said the goal is ensuring "the new frontier of finance is built in the United States of America." One venue has already filed to list single-stock perps on names such as Apple, Tesla and Nvidia.
Analysis
Why This Matters
- U.S. investors gain access through federally regulated exchanges to a leveraged, no-expiration derivative previously confined to offshore crypto platforms.
- The decision extends the CFTC's push to "onshore" perpetual products, potentially shifting trading volume from unregulated venues into the U.S. system.
- Single-stock perps give traders a new way to take long or short leveraged positions in individual companies without expiration dates, with funding costs paid over time.
Background
Perpetual futures have long been a staple of crypto markets, where exchanges offer contracts with no expiry date and built-in funding payments. The CFTC's earlier approval of Bitcoin perpetual futures, followed by this clearance for equity perps, is part of a broader effort by the agency to bring the products under U.S. regulation. The CFTC and SEC signed a memorandum of understanding in March to divide oversight of the products.
Key Perspectives
CFTC Chairman Michael Selig: says onshoring perpetual derivatives lets them flourish in the U.S. with safeguards, keeping investors off often unregulated offshore venues.
SEC Chairman Paul Atkins: described the previous regulatory position for such products as a "no man's land."
What to Watch
- Whether CFTC-registered exchanges move quickly to list single-stock perps; one venue has already filed for names including Apple, Tesla and Nvidia.
- How the joint CFTC-SEC oversight arrangement works in practice for contracts that sit at the boundary of securities and futures regulation.
- Whether the onshoring push extends further, including CFTC plans floated to bring crypto exchanges under federal oversight.
Checked
12 claims in this story checked against 1 source: 12 supported.
Show each claim
- SupportedThe CFTC has cleared perpetual futures on individual stocks to trade on registered U.S. exchanges.Decrypt: “The CFTC cleared perpetual futures on individual stocks to trade on registered U.S. exchanges for the first time”
- SupportedThe contracts have no expiration date and fall under joint CFTC-SEC oversight.Decrypt: “The contracts fall under joint CFTC-SEC oversight via a March memorandum of understanding.”
- SupportedThe CFTC said Tuesday that contracts tied to individual stocks can begin trading on CFTC-registered exchanges, bringing the crypto-market staple to traditional equities for the first time.Decrypt: “The Commodity Futures Trading Commission said Tuesday that “equity perpetual futures,” or perpetual contracts tied to individual stocks, can now begin trading on CFTC-registered exchanges.”
- SupportedPerpetual futures track an asset’s price, have no expiration date, and can let traders hold leveraged positions indefinitely if they meet margin and funding requirements.Decrypt: “Perpetual futures, long a staple of crypto markets, are derivatives that track an asset’s price but carry no expiration date, letting traders hold leveraged positions indefinitely as long as they meet margin and funding requirements.”
- SupportedSelig said, “In my inaugural remarks, I directed the CFTC to use the tools at its disposal to onshore perpetual derivative products so that they can flourish in the U.S., subject to appropriate safeguards.”Decrypt: ““In my inaugural remarks, I directed the CFTC to use the tools at its disposal to onshore perpetual derivative products so that they can flourish in the U.S., subject to appropriate safeguards,” he said”
- SupportedPerpetual futures had been largely off-limits to U.S. traders, who had otherwise had to use offshore platforms, according to Selig.Decrypt: “Until now, they’ve been largely off-limits to U.S. traders. [...] Selig : that regulated U.S. venues are safer than the offshore platforms traders have otherwise had to use.”
- SupportedSelig argued that regulated markets let American investors access the products within the CFTC’s framework rather than on often-unregulated offshore venues.Decrypt: “Bringing these products into regulated markets “ensures that American investors and traders can access these products within the protections of the CFTC’s proven regulatory framework, rather than being , and often unregulated, venues,” he said.”
- SupportedThe contracts were deemed approved as security futures products under the Commodity Futures Modernization Act of 2000, under joint CFTC-SEC oversight.Decrypt: “The equity perps were deemed approved as security futures products under the Commodity Futures Modernization Act of 2000, placing them under the joint oversight of the CFTC and the Securities and Exchange Commission.”
- SupportedSelig credited a March memorandum of understanding with ending the jurisdictional limbo that Atkins called a regulatory “no man’s land.”Decrypt: “Selig credited a historic memorandum of understanding the two agencies signed in March for ending the jurisdictional limbo that had, in SEC Chairman Paul Atkins’s words, stranded such products in a regulatory “no man’s land.””
- SupportedThe approval builds on the CFTC’s earlier approval of the first true Bitcoin perpetual futures on a regulated U.S. exchange for Kalshi earlier this year.Decrypt: “Chairman Michael Selig framed it as part of his push to “onshore” perpetual products, building on the agency’s earlier approval of Bitcoin perps for Kalshi.”
- SupportedSelig said the goal is ensuring “the new frontier of finance is built in the United States of America.”Decrypt: “For Selig, the goal is explicit: ensuring “the new frontier of finance is built in the United States of America.””
- SupportedA venue has filed to list single-stock perpetuals on Apple, Tesla and Nvidia.Decrypt: “and cleared the , which recently filed to list single-stock perps on names like Apple, Tesla and Nvidia.”
