The Commodity Futures Trading Commission has cleared a path for perpetual futures tied to individual stocks to begin trading on eligible U.S. exchanges, bringing a contract structure popular in crypto markets into regulated American equity derivatives. CFTC Chairman Michael Selig announced the step on November 3, saying the products were deemed approved as security futures under Commission Regulation 40.3. The decision is a meaningful expansion of U.S. perpetual-futures policy, but it is not a complete launch notice: the agency did not identify the first exchanges, underlying stocks or trading start times.

A futures contract without a fixed expiry

Unlike a conventional futures contract, a perpetual future has no scheduled expiration date. Long and short positions are kept close to the price of the underlying asset through recurring funding payments and daily settlement mechanics. The structure lets traders maintain directional exposure without rolling into a new contract each month or quarter. It can also involve leverage, which reduces the cash needed to open a position but increases the speed and size of potential losses. Holders do not receive the ownership, voting or dividend rights that come with the underlying stock.

Related reporting: Coinbase seeks U.S. approval for equity perpetual futures

Joint CFTC and SEC oversight

Selig said the contracts qualify as security futures products under the Commodity Futures Modernization Act of 2000. That classification subjects them to the Commodity Exchange Act, federal securities laws and oversight by both the CFTC and Securities and Exchange Commission. Eligible trading venues must be CFTC-designated contract markets and also notice-registered with the SEC as national securities exchanges for security futures. The approach builds on the agencies' March memorandum of understanding and the CFTC's May approval of a bitcoin perpetual future on a regulated U.S. exchange.

What the announcement does not establish

The CFTC statement did not say which submitted exchange rules became effective, list any stock symbols or provide contract-level details on margin, funding rates, trading hours and market-maker obligations. Separate September filings from Coinbase Derivatives, Kalshi and Bitnomial outlined possible frameworks, but those filings should not be treated as proof that every proposed contract is immediately available. Investors will need exchange-specific notices before knowing the actual products, customer eligibility, collateral rules and launch timetable.

A legal challenge begins immediately

The regulatory path is already contested. The Capital Markets Alliance, whose members include Cboe and Citadel Securities, filed suit in federal court on November 3 seeking to vacate the approvals. The group argues that single-stock perpetuals are security-based swaps under exclusive SEC jurisdiction rather than security futures under joint oversight. Reuters reported that the CFTC defended the move and objected to the legal challenge, while the SEC did not immediately comment. The lawsuit does not itself cancel the approval, but it introduces uncertainty that venues and intermediaries will have to assess before launch.

What traders and markets should watch

The next evidence will come from named exchange launches and final contract specifications. Margin floors, funding calculations, trading halts and the relationship between perpetual prices and the underlying cash market will determine how the products behave in practice. Regulators will also need surveillance across equity and derivatives venues to address manipulation and price-dislocation risks. For now, the CFTC has opened a regulated route for equity perpetuals, but commercial availability, market depth and the durability of the legal classification remain unresolved.

Sources

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