The Commodity Futures Trading Commission (CFTC) has cleared the way for perpetual futures tied to individual stocks to begin trading on regulated U.S. exchanges for the first time. CFTC Chairman Michael Selig announced on Nov. 3 that such contracts can trade on CFTC-registered exchanges, following the agency’s earlier approval of a bitcoin perpetual futures contract.
Product Structure and Regulatory Basis
Unlike conventional futures, perpetual futures have no expiration date, allowing traders to maintain leveraged positions indefinitely as long as they meet margin requirements. The contracts were deemed approved under CFTC Regulation 40.3 as security futures products, drawing their legal foundation from the Commodity Futures Modernization Act of 2000. As a result, equity perpetuals face requirements under the Commodity Exchange Act, federal securities laws, and oversight from both the CFTC and the Securities and Exchange Commission (SEC).
Chairman Selig Frames Move as Onshoring Effort
Selig described the decision as part of a broader effort to bring derivatives trading under American supervision. “In my inaugural remarks, I directed the CFTC to use the tools at its disposal to onshore perpetual derivative products so that they can flourish in the U.S., subject to appropriate safeguards,” he stated. He added that the announcement builds on the agency’s earlier work with digital assets by extending perpetual futures beyond digital commodities and into traditional securities.
The chairman argued that domestic oversight offers an alternative to foreign platforms operating outside established American regulatory protections. “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,” Selig said.
SEC-CFTC Coordination
Selig pointed to decades of jurisdictional friction between the two agencies, recalling SEC Chairman Paul Atkins’ description of a regulatory “no man’s land.” “The CFTC and SEC have turned the page on that era, and are committed to delivering regulatory clarity for innovative products and a clear path to market, rather than more casualties of jurisdictional disputes,” Selig declared. The two regulators also signed a memorandum of understanding earlier in 2026 to coordinate their supervisory responsibilities.
From Bitmex’s Bitcoin Experiment to Wall Street
The financial mechanics behind perpetual futures became widely known through cryptocurrency trading. The now-retired centralized exchange Bitmex launched its XBTUSD perpetual swap in May 2016, popularizing a structure that allowed traders to speculate on bitcoin without a fixed contract expiration. A funding mechanism typically transfers payments between bullish and bearish positions to help keep perpetual prices aligned with underlying markets, though funding intervals and contract specifications vary by exchange.
The concept itself predates crypto. Economist Robert Shiller explored perpetual futures decades earlier, although Bitmex, before closing this past September, helped turn the instrument into a widely traded product. The CFTC’s latest move brings that trading structure into a market historically governed by different derivatives conventions.
Commercial Test Ahead
Selig closed his address by crediting agency personnel and emphasizing Washington’s commitment to domestic financial development. “I would like to thank the many dedicated staff at the CFTC for their continued hard work and collaboration with the SEC,” he said. “And I look forward to building on today’s milestone as the CFTC works to ensure that the new frontier of finance is built in the United States of America.”
The regulatory door is open, but the commercial test is just beginning. Equity perpetuals must now compete with established stock options, conventional futures, and other leveraged instruments in a market where legal authorization does not guarantee trading demand.
