CFTC Greenlights Perpetual Futures on U.S. Stocks, Paving Way for Regulated Equity Derivatives

CFTC Brings Perpetuals to Wall Street

For the first time, U.S. regulators have approved perpetual futures contracts tied to individual stocks, marking a significant development in the American derivatives market. The Commodity Futures Trading Commission (CFTC) has cleared these so-called “Equity Perps” to be listed on dual-registered exchanges in the United States, allowing traders to access products previously available only on offshore platforms. Unlike traditional futures contracts, perpetuals have no expiration date and rely on ongoing funding payments between buyers and sellers to keep prices in line with the underlying stock.

The CFTC’s decision comes less than a month after it approved Kalshi’s BTCPERP—the first U.S.-listed bitcoin perpetual—on May 29, 2024. This rapid succession signals a broader regulatory openness to derivative products that mirror popular crypto trading models.

The CFTC statement did not name any specific exchange or set a launch date for equity perpetual futures as of June 2024.

Traders Get Regulated Alternative to Offshore

CFTC Chair Michael Selig emphasized that the move offers U.S. traders a regulated path away from “offshore, and often unregulated, venues.” Until now, Americans seeking exposure to equity perpetuals had little choice but to use foreign platforms lacking clear oversight. The new approval enables exchanges with both CFTC designated contract market status and SEC national securities exchange registration to list these products under Commission Regulation 40.3.

Yet there’s a catch: while the CFTC gave its green light, it did not specify which exchanges would launch these contracts or when they might go live. No individual stock contracts were named in the announcement, and no launch date has been set. This uncertainty stands in contrast to the rapid rollout of Kalshi’s BTCPERP product immediately after its own approval on May 29.

The regulatory framework is ready, but actual trading may still be weeks or months away.

Blockchain Stock Market Gathers Industry Heavyweights

While regulators are opening doors for new derivatives, traditional market infrastructure is also evolving. Four major transfer agents—Broadridge, Computershare, Equiniti, and Superstate—have joined the New York Stock Exchange’s planned blockchain-based marketplace for tokenized stocks. These firms will provide shareholder records and voting services directly onchain, according to coindesk.com.

The NYSE’s initiative highlights a parallel trend: as perpetual futures bring crypto-style derivatives into regulated finance, established players are exploring blockchain rails for traditional equities themselves. The involvement of four prominent transfer agents underscores growing institutional interest in integrating blockchain with core market functions.

Equity Perps Debut Under Dual Oversight

The Commodity Futures Modernization Act of 2000 laid the groundwork for joint regulation of security futures by both the CFTC and SEC—a partnership formalized in a memorandum of understanding signed on March 11 this year. Under this regime, equity perpetuals must meet requirements from both agencies before being listed in the U.S. Adding layers of compliance not present in many offshore markets.

This dual oversight aims to balance innovation with investor protection. However, while regulatory cooperation is at an all-time high, concrete product details remain elusive: no exchange has publicly committed to listing equity perps as of June 2024.

There is momentum from both regulators and industry participants—yet the absence of contract specifics tempers immediate expectations for trading volumes or market impact.

Upcoming market signals

If any dual-registered U.S. exchange announces a launch date or lists the newly approved equity perpetual futures, it will immediately provide traders with a regulated alternative to offshore venues; however, as of now, no specific exchange, contract, or launch date has been named or confirmed by the CFTC.