The Commodity Futures Trading Commission (CFTC) has opened regulated U.S. exchanges to perpetual futures linked to individual stocks for the first time. The move extends Washington's effort to bring crypto-style trading products into the United States. CFTC Chairman Michael Selig said Tuesday that existing security futures rules provided for the contracts, called equity perps, to be deemed approved. The CFTC and Securities and Exchange Commission (SEC) will share oversight.
The contracts rely on provisions of the Commodity Futures Modernization Act of 2000 that establish joint oversight by the SEC and CFTC. Stock-based derivatives come under securities and commodities laws, which has created regulatory obstacles for equity perps. The agencies also agreed to strengthen coordination on products that span both agencies' jurisdictions. Selig's statement named neither the exchanges that would list equity perps nor the stocks available when trading begins.
Selig argued that allowing these products in regulated markets gives American investors and traders access with CFTC protections instead of requiring access through offshore, often unregulated venues. Perpetual futures allow traders to speculate on asset prices without holding the underlying assets. Unlike conventional futures, perpetual futures do not expire. The contracts frequently involve leverage, which can increase both profits and losses.
Perpetual futures are widely used in crypto trading, especially through offshore exchanges and decentralized platforms. Hyperliquid has helped make onchain perpetual futures popular and has become a major platform for leveraged blockchain trading. DeFiLlama data put perpetual futures trading volume above $630 billion during the past month. Intercontinental Exchange, which owns the New York Stock Exchange, recently invested in tradeXYZ, a developer of perpetual futures markets on Hyperliquid.
The Trump administration has prioritized bringing perpetual futures markets under U.S. oversight. Earlier this year, the CFTC approved a bitcoin perpetual futures contract, the first such contract on a regulated U.S. exchange. President Donald Trump said during a White House meeting in August that the CFTC was working to bring Hyperliquid under federal regulation in the United States.