The US Commodity Futures Trading Commission said perpetual futures tied to individual stocks can now be listed on US-regulated venues, opening the door for a product long associated with crypto markets to move into traditional equities. The announcement was made on November 3 by CFTC Chair Michael Selig.

The contracts, referred to as Equity Perps, may trade for the first time on exchanges registered with both the CFTC and the Securities and Exchange Commission. Their launch comes with joint oversight by the two agencies and is already facing a legal challenge from market participants seeking to stop the move.

A new product for US stock markets

Perpetual futures let traders gain exposure to changes in the price of an underlying asset without owning the asset itself. Unlike standard futures, they do not expire on a set date. The product became widely used in crypto trading, including on decentralized platforms, and the CFTC decision now extends that structure to individual US stocks.

Selig said the contracts are deemed approved under CFTC Rule 40.3. He also said Equity Perps are treated as security futures under the Commodity Futures Modernization Act of 2000, placing them under both commodities and securities rules rather than under a single regulatory framework.

Why the CFTC says the approval matters

In the CFTC chair’s view, the approval is part of a broader effort to make perpetual derivatives available within the US regulatory perimeter. Selig said the expansion could give US market participants access to a tool used for risk management and price discovery while reducing the need to rely on offshore venues, which he described as often unregulated.

He linked the latest decision to an earlier step taken in 2026, when the CFTC approved the listing of what it described as the first fully fledged perpetual bitcoin futures contract on an exchange under its supervision. The stock-based contracts broaden that approach from crypto-linked derivatives to traditional financial assets.

Joint oversight with the SEC

The approval depends on trading taking place on exchanges that are registered with both the CFTC and the SEC. Selig pointed to a March 2026 memorandum of understanding between the agencies that was intended to improve coordination and reduce inconsistencies in the supervision of financial products.

According to Selig, weak coordination between regulators over many years slowed the development of new instruments. The article notes that SEC Chair Paul Atkins had previously described the resulting situation as a regulatory "no man's land," underscoring the overlap and uncertainty around products that sit between existing categories.

Court challenge could test the rollout

The CFTC’s move is not going unopposed. The Capital Markets Alliance, backed by Cboe and Citadel Securities, has filed a lawsuit seeking to block the approval.

The plaintiffs argue that allowing the contracts could create a parallel market for synthetic equities and weaken the long-standing division of authority between regulators. For now, the CFTC has stated its position on the contracts’ approval and legal classification, but the court challenge may shape how quickly Equity Perps can develop in the US market.

Source: incrypted.com