CFTC clears perpetual futures on stocks, bringing crypto trading model to Wall Street
The Commodity Futures Trading Commission (CFTC) has cleared the way for perpetual futures tied to individual stocks to trade on regulated U.S. exchanges for the first time.
The Commodity Futures Trading Commission (CFTC) has cleared the way for perpetual futures tied to individual stocks to trade on regulated U.S. exchanges for the first time, expanding Washington's push to bring crypto-style trading products onshore. CFTC Chairman Michael Selig said Tuesday the contracts, known as equity perps, were deemed approved under existing security futures rules.
They will be subject to oversight by both the CFTC and Securities and Exchange Commission (SEC). The products have become a staple of crypto trading, particularly on offshore exchanges and decentralized platforms such as Hyperliquid, which has emerged as a major venue for leveraged trading on blockchain rails.
I believe that bringing these types of innovative products into our regulated markets ensures that American investors and traders can access these products within the protections of the CFTC's proven regulatory framework, rather than being forced to turn to offshore, and often unregulated, venues.
Wall Street takes notice
The Trump administration has made bringing perps markets under U.S. oversight a priority. Earlier this year, the CFTC approved the first bitcoin perpetual futures contract on a regulated U.S. exchange. President Donald Trump said in August at a White House meeting that the CFTC is working to bring Hyperliquid into the U.S. under federal rules.
The rise of onchain perps has also caught Wall Street's attention. Intercontinental Exchange (ICE), the New York Stock Exchange's parent company, recently invested in tradeXYZ, a builder of perpetual futures markets on Hyperliquid. Perpetual futures, or perps, have become a major market letting traders bet on an asset's price without owning it.
Unlike traditional futures, they have no expiration date and often use leverage, which can amplify gains and losses. Perps recorded over $630 billion in trading volume over the past month, according to DeFiLlama data. Equity perps have faced regulatory hurdles because stock-based derivatives fall under both securities and commodities laws.
The new contracts use a framework established by the Commodity Futures Modernization Act of 2000, which provides for joint SEC and CFTC oversight. The two agencies also agreed to coordinate more closely on products crossing their jurisdictions. Selig's statement did not identify which exchanges would offer equity perps or the stocks available at launch.
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