CFTC Approves Stock Perpetual Futures for US Trading

US Regulators Greenlight Stock-Based Perpetual Futures, Expanding Crypto Product to Traditional Markets

U.S. regulators are paving the way for stock-based perpetual futures, extending a popular cryptocurrency trading product into traditional financial markets amidst ongoing legal challenges.

Perpetual futures contracts linked to individual stocks can now commence trading on regulated U.S. exchanges for the first time, according to the Commodity Futures Trading Commission (CFTC). This development brings a derivatives product, widely popularized in cryptocurrency markets, into the realm of traditional equities.

CFTC Chairman Michael Selig stated in a Tuesday announcement that the contracts received deemed approval under CFTC Regulation 40.3. They can be offered on exchanges registered with both the CFTC and the Securities and Exchange Commission (SEC) for trading security futures products.

Selig explained that introducing these products into regulated U.S. markets would provide American traders with access to perpetual futures under U.S. regulatory safeguards, preventing them from being “forced to turn to offshore, and often unregulated, venues.”

Perpetual futures enable traders to speculate on an asset’s price without directly owning the underlying asset or facing a contract expiration date. The crypto exchange BitMEX was instrumental in popularizing these instruments, commonly known as “perps,” starting in 2016.

Regulatory Filings Preceded Approval

The CFTC’s announcement follows a series of regulatory filings submitted in September. At that time, Coinbase, Kalshi, and Kraken’s parent company, Payward, through its Bitnomial exchange, all sought approval to offer perpetual futures tied to individual U.S. stocks. OG.com joined this initiative days later, proposing contracts designed for round-the-clock trading on weekdays.

These filings came after the CFTC’s May approval of Bitcoin perpetual futures contracts for Kalshi. Separately, regulatory relief was granted to Coinbase, allowing it to offer access to certain cryptocurrency perpetual futures listed on an affiliated foreign exchange.

Selig did not disclose which exchanges are expected to offer the contracts or provide a specific timeline for when trading will begin.

Legal Opposition and Presidential Remarks

The approval also arrives nearly three months after President Donald Trump indicated that the CFTC was working to bring Hyperliquid, a decentralized crypto exchange known for its perpetual futures trading, into the U.S. in a “fully compliant and legal fashion.” Trump made these remarks during an August 19 White House event. At the time, neither the CFTC nor Hyperliquid had publicly announced a formal plan for integrating the platform into U.S. markets.

However, the CFTC’s approach to perpetual futures has encountered legal opposition. In June, CME Group’s Chicago Mercantile Exchange filed a lawsuit against the regulator over its approval of cryptocurrency perpetual futures. CME argued that these contracts should be classified as swaps rather than futures, asserting that the agency had overstepped its authority. This distinction is significant because swaps are subject to different regulatory requirements, potentially including more stringent reporting, margin, and registration rules, whereas futures can operate under the existing futures exchange framework.

The CFTC moved to dismiss the lawsuit in September, contending that CME lacked standing as it had not demonstrated financial harm and could itself list similar contracts.