CFTC Chairman Says Stock Perpetual Futures Can Begin on US Exchanges

Regulatory Opening for Equity Perpetuals

Michael Selig, chairman of the Commodity Futures Trading Commission (CFTC), announced on November 3 that individual-equity perpetual futures can begin trading on CFTC-registered exchanges that also meet the relevant Securities and Exchange Commission (SEC) registration requirements.

The announcement clarifies the status of these derivative contracts within the current U.S. regulatory structure. According to the CFTC, the contracts are deemed approved under an existing Commission regulation as security-futures products. Consequently, they are subject to both commodities and federal securities-law requirements.

Dual Oversight Framework

The authorization relies on a coordinated framework between the CFTC and the SEC. An interagency memorandum of understanding was signed earlier in 2026 to establish this regulatory alignment. This dual oversight distinguishes U.S.-regulated venues from unregulated or lightly regulated offshore platforms, where such products have historically been traded without the same level of consumer protection or compliance standards.

Selig emphasized that the regulatory opening permits trading on exchanges that satisfy both agencies’ standards. “Individual-equity perpetual futures can begin trading on CFTC-registered exchanges that also meet the relevant SEC registration requirements,” he stated. The development follows the earlier approval of a Bitcoin perpetual futures product on a regulated U.S. venue, signaling a broader trend toward integrating crypto-native market structures into traditional financial infrastructure.

Product Mechanics and Risks

Perpetual contracts differ from traditional futures in that they do not expire or settle on a specified date. Instead, they are designed to maintain exposure to an underlying asset without a conventional expiration date. These products use specific mechanisms to keep their price related to the underlying asset, offering continuous leveraged exposure. While popular in cryptocurrency markets, applying this structure to individual stocks introduces complexity because stocks involve corporate actions, shareholder rights, trading halts, and varying market hours.

Traders interacting with these instruments are trading a derivative, not the underlying share itself. The CFTC noted that regulation does not eliminate the risks associated with leveraged positions. Margin calls, volatile prices, thin liquidity, and market disruptions can still result in significant losses. U.S. venues are required to demonstrate product utility while maintaining clarity on customer protections, a balance that differs from the continuous access models common in crypto-native perpetual markets.

Implementation and Next Steps

The phrase “can begin trading” establishes a regulatory permission but does not confirm that every broker or exchange will immediately offer every specific contract. Market participants are advised to review contract specifications, margin arrangements, and eligible customer criteria as individual exchanges implement these products. The move represents a convergence of digital-asset market structures and traditional finance, with securities markets adopting a derivative format popularized by digital-asset trading rather than the blockchain technology itself.

This development marks a significant shift in how U.S. regulators view instruments that bridge traditional securities and derivatives. The interagency cooperation aims to address the overlapping interests of the CFTC and SEC in instruments that do not fit neatly into traditional categories, providing a clearer path for institutional and retail access to equity-linked perpetual contracts within a compliant U.S. framework.