CFTC Just Opened America’s Stock Market to Perpetual Futures

The Commodity Futures Trading Commission (CFTC) has cleared equity perpetual futures contracts that track individual US stocks, allowing them to trade on American regulated exchanges. These futures contracts, which never expire, were approved on Tuesday and represent a product Americans previously had to access through offshore platforms.

How They Work

Unlike ordinary futures that expire on a fixed date, perpetual futures roll on indefinitely. A recurring funding payment keeps the contract close to the share price. Coinbase Derivatives' design shows buyers pay sellers when the contract trades above the stock, at up to 0.10% per hour. Kalshi's September 18 filing lists 58 contracts covering 55 stocks including Apple, Tesla, Nvidia, Microsoft, and Alibaba's US shares, plus two funds tracking the S&P 500 and Nasdaq-100.

Leverage Concerns

The contracts come with significant leverage. Kalshi allows traders to hold a stock position by posting just 15.5% of its value. According to Better Markets, offshore versions offer up to 20x leverage, while US versions reportedly allow up to 6x. A 20% market drop could wipe out a 5x leveraged position, triggering automatic liquidations during steep sell-offs.

Market Response

The CFTC approved the contracts under Regulation 40.3, which deems them approved after a 45-day review window. Chairman Michael Selig classified them as security futures, meaning the SEC shares oversight. Only exchanges registered with the SEC can list them. Incumbents are pushing back, with CME Group already suing the CFTC over its approval of crypto perpetuals. Meanwhile, Intercontinental Exchange plans 24/7 US futures on Hyperliquid, and early volumes will show whether offshore demand shifts to domestic platforms.