The Commodity Futures Trading Commission (CFTC) has cleared the way for equity perpetual futures contracts to trade on regulated US exchanges for the first time, marking a significant development in the convergence of traditional financial markets and cryptocurrency trading.
The decision allows investors to gain exposure to individual stocks through a derivatives product that has become increasingly popular across global cryptocurrency exchanges.
Announced by CFTC Chairman Michael Selig, the decision permits perpetual futures contracts tied to individual equity securities to begin trading on designated contract markets registered with both the CFTC and the Securities and Exchange Commission (SEC).
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The contracts, commonly called equity perps, were deemed approved under Commission Regulation 40.3 as security futures products. Perpetual futures are financial derivatives that allow traders to speculate on the future prices of assets without directly purchasing or owning them.
Unlike conventional futures contracts, which have predetermined expiration dates, perpetual contracts can remain open indefinitely. They typically use funding rate mechanisms, involving periodic payments between buyers and sellers, to keep contract prices aligned with the underlying asset.
The product has gained substantial traction in cryptocurrency markets, particularly through offshore exchanges and decentralized trading platforms such as Hyperliquid.
Traders have increasingly embraced perpetual contracts because they provide continuous market exposure, leverage and opportunities to profit from both rising and falling prices.
By extending the instrument to traditional equities, the CFTC is effectively bringing a popular crypto trading mechanism into the regulated American securities market.
Selig described the development as an important step toward allowing American investors to access innovative financial products under established regulatory protections.
He argued that bringing equity perpetual futures into regulated markets would reduce the need for domestic traders to rely on offshore platforms, where regulatory oversight and investor protections can be considerably weaker.
The approval also represents progress in regulatory cooperation between the CFTC and SEC. Under the Commodity Futures Modernization Act of 2000, security futures products fall within a framework that recognizes the complementary responsibilities of both agencies.
Consequently, equity perpetual futures will be subject to applicable requirements under the Commodity Exchange Act and federal securities laws.
The development follows the CFTC’s earlier approval of the first genuine Bitcoin perpetual futures contract on a regulated American exchange in May 2026. That decision established an important foundation for expanding perpetual derivatives beyond digital assets into additional financial markets.
Several companies have already expressed interest in bringing equity perpetual products to American traders. Coinbase, Kalshi and Kraken parent Payward have pursued regulatory pathways for stock-linked perpetual contracts, reflecting growing competition to establish regulated trading infrastructure.
However, the latest announcement does not identify which exchanges will introduce the first products or specify individual stocks available for trading. Regulatory permission also does not mean that trading has already commenced.
The move comes as traditional financial institutions increasingly explore opportunities created by round-the-clock trading, tokenization and blockchain-based financial infrastructure. It could eventually encourage greater competition between established exchanges and cryptocurrency-native platforms.
Equity perpetual futures carry considerable risks. Their potential use of leverage can magnify both profits and losses, while funding payments can increase trading costs. Investors will also need to understand the regulatory and contractual protections governing these instruments.
The CFTC’s decision represents another milestone in modernizing American financial markets. By allowing equity perpetual futures on regulated exchanges, Washington is creating a pathway for crypto-inspired financial innovation to enter mainstream investing while maintaining oversight and investor protection.