The way is now clear for the perpetual futures model widely used in the U.S. crypto market to be offered on regulated exchanges through contracts tied to individual stocks.
According to CoinDesk, Commodity Futures Trading Commission (CFTC) Chair Michael Selig said in a statement on November 3 that perpetual futures contracts based on stocks are deemed approved under existing securities futures rules. The products will be subject to joint oversight by the CFTC and the Securities and Exchange Commission (SEC).
Trade on a stock’s price without buying it
These contracts, known to crypto investors as “perpetuals” or “perps,” allow traders to take positions on price movements without owning the underlying asset. Unlike traditional futures, the contracts have no set expiration date. The use of leverage can magnify both potential gains and losses.
The new step allows this model to be offered for individual stocks through regulated exchanges in the U.S. Selig’s statement did not say which exchanges would offer the products or which stocks would initially be included.
Selig argued that bringing these products to U.S.-regulated markets would allow investors to trade under domestic regulatory protections instead of turning to overseas platforms, which are often unregulated.
A growing crypto market has caught Wall Street’s attention, too
Perpetual futures have become a significant part of the crypto market with the rise of platforms such as Hyperliquid. DeFiLlama data cited in the report showed that the market recorded more than $630 billion in trading volume over the past month.
Earlier this year, the CFTC also approved the first Bitcoin perpetual futures contract on a regulated U.S. exchange. One factor that complicated the process for stock-based products was that both securities and commodities regulations apply. The new contracts use the joint oversight framework established by the Commodity Futures Modernization Act of 2000. The two agencies also agreed to increase coordination on products that fall within both of their jurisdictions.
On the Wall Street side, Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange, invested in tradeXYZ, which is developing perpetual futures markets on Hyperliquid. The trading model, which has gained traction in crypto, is thus beginning to establish a broader presence in U.S. markets through investments by major financial institutions as well as regulatory steps.
Not investment advice.