TLDR
- The CFTC cleared perpetual futures tied to individual stocks for regulated US exchanges.
- Chairman Michael Selig said the contracts were deemed approved under CFTC Regulation 40.3.
- No exchanges or start date were named.
- Coinbase, Kalshi, Payward and OG.com filed for approval in September.
- A Wall Street group sued Tuesday to overturn the approval.
Perpetual futures contracts tied to individual stocks can now trade on regulated US exchanges for the first time. The Commodity Futures Trading Commission (CFTC) announced the move in a statement on Tuesday.
CFTC Chairman Michael Selig said the contracts were deemed approved under CFTC Regulation 40.3. They can be offered on exchanges registered with both the CFTC and the Securities and Exchange Commission (SEC) to trade security futures products.
Today, equity perps can begin trading for the first time on @CFTC registered exchanges.
This move reflects my commitment to ensuring that America’s markets remain the most innovative, liquid, and well-regulated in the world. Instead of being forced to turn to offshore,… https://t.co/6nagthvmoS
— Mike Selig (@ChairmanSelig) November 3, 2026
Perpetual futures, often called perps, let traders take a position on an asset’s price without owning it. The contracts have no expiration date.
BitMEX, a crypto exchange, helped popularize perps in 2016. The product has been best known in cryptocurrency markets until now.
Selig said the approval lets American traders use perps under US regulatory safeguards. He said they would no longer be “forced to turn to offshore, and often unregulated, venues.”
Selig also said the step lets US market participants use tools that have become widely sought for risk management and price discovery. He said both the SEC and the CFTC would oversee the contracts.
Selig did not name which exchanges will offer the contracts. He also did not give a date for when trading will begin.
Filings and earlier approvals
The announcement follows a wave of filings in September. Coinbase, Kalshi and Payward, the parent company of Kraken, through its Bitnomial exchange, asked for approval to offer perps tied to individual US stocks.
OG.com joined the push days later. It proposed contracts that could trade around the clock on weekdays.
In May, the CFTC approved Bitcoin perpetual futures contracts for Kalshi. It also gave separate relief that lets Coinbase offer access to certain crypto perps listed on an affiliated foreign exchange.
In June, the CFTC asked for public comment on crude oil perpetual contracts and 24/7 trading. Perps have grown in popularity over the past year.
Much of that trading took place onchain on platforms like Hyperliquid after the US and Israel struck Iran earlier this year. The strikes came over a weekend, when traditional oil futures markets were closed.
On Aug. 19, President Donald Trump said the CFTC was working to bring Hyperliquid into the US in a “fully compliant and legal fashion.” At the time, neither the CFTC nor Hyperliquid had announced a formal plan.
Lawsuits challenge the approach
The CFTC’s approach to perps has faced legal opposition. In June, CME Group’s Chicago Mercantile Exchange sued the agency over its approval of crypto perps. CME argued the contracts should be regulated as swaps instead of futures, and that the agency exceeded its authority.
Swaps are subject to different rules. These can include stricter reporting, margin and registration requirements, while futures can trade under the existing futures exchange framework.
The CFTC moved to dismiss the suit in September. It argued that CME had not shown financial harm and could list similar contracts itself.
On Tuesday afternoon, the Capital Markets Alliance filed a lawsuit seeking to overturn the new approval. The group includes Cboe, Citadel Securities and Healthy Markets.
The group argues the contracts are security-based swaps under the SEC’s jurisdiction. It says the CFTC broke the Administrative Procedure Act by not adequately explaining its decision or weighing the impact on investors.
The lawsuit also asks a court to stop the approvals from taking effect while the case moves forward.
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