CFTC Approves Equity Perpetual Futures in Historic US Move

A Major Shift in American Financial Markets

Something big just happened in the world of financial derivatives. On November 3, 2026, Commodity Futures Trading Commission (CFTC) Chairman Michael Selig announced a groundbreaking regulatory decision.

For the first time ever, perpetual futures tied to individual stocks can now trade on regulated U.S. exchanges.

This decision builds directly on the CFTC's earlier approval of Bitcoin perpetual futures contracts. It extends a trading tool long associated with offshore crypto platforms into traditional stock markets.

Understanding Perpetual Futures

If you are used to traditional stock trading, you might wonder how perpetual futures work.

Standard futures contracts always have a fixed expiration date. When that date arrives, the trade ends and settles.

Perpetual futures, often called perps, are different. They have no expiration date at all. Traders can keep their leveraged positions open indefinitely as long as they meet margin requirements.

To keep perpetual prices in line with actual stock prices, exchanges use periodic funding payments between buyers and sellers. Long position holders pay short position holders when prices are high, and short position holders pay long position holders when prices fall.

While leverage offers flexible strategies, it also carries substantial financial risk. Market movements can trigger fast liquidations, so managing risk remains crucial for every trader.

Bringing Derivative Trading Back to U.S. Soil

CFTC Chairman Michael Selig explained that this move is part of a larger plan. He wants to bring advanced derivative products back under American regulation.

In my inaugural remarks, I directed the CFTC to use the tools at its disposal to onshore perpetual derivative products so that they can flourish in the U.S., subject to appropriate safeguards.

Selig noted that American investors often turn to foreign, unregulated venues for these trading tools. Bringing perps to U.S. exchanges gives traders access within a protected regulatory environment.

I believe that bringing these types of innovative products into our regulated markets ensures that American investors and traders can access these products within the protections of the CFTC’s proven regulatory framework, rather than being forced to turn to offshore, and often unregulated, venues.

Two Regulators Teaming Up Under a 2000 Law

The legal foundation for approving equity perpetuals comes from CFTC Regulation 40.3 and the Commodity Futures Modernization Act of 2000.

Because these contracts count as security futures products, they fall under both the Commodity Exchange Act and federal securities laws. That means the CFTC and SEC must work together to supervise them.

In the past, jurisdictional overlaps created confusion. SEC Chairman Paul Atkins once referred to this overlapping space as a regulatory no man's land.

To solve this issue, both regulatory bodies signed a memorandum of understanding earlier in 2026 to coordinate their supervisory duties.

The CFTC and SEC have turned the page on that era, and are committed to delivering regulatory clarity for innovative products and a clear path to market, rather than more casualties of jurisdictional disputes.

From Crypto Origins to Mainstream Wall Street

The concept of perpetual futures actually originated in academic economics decades ago when economist Robert Shiller explored perpetual contracts.

However, cryptocurrency platforms turned the idea into a world-wide trading staple. In May 2016, centralized exchange BitMEX launched its famous XBTUSD perpetual swap, popularizing the format across crypto markets.

BitMEX eventually closed its doors in September 2026, but the contract structure it popularized has now entered mainstream American finance.

At the time of this regulatory announcement, major cryptocurrencies traded steadily, with Bitcoin (BTCBTC+1.03%) hovering around $77,495 (+0.87%) and EthereumETH+1.64% near $2,287 (+1.80%).

Past performance of digital assets or financial products is not an indicator of future results. Digital assets remain highly volatile.

What Happens Next for Stock Perps?

Getting regulatory approval is a major achievement, but commercial adoption is the next challenge.

Equity perpetuals will now compete against established stock options, standard futures, and other leveraged products on U.S. markets. Regulatory authorization alone does not guarantee high trading volume.

Even so, Chairman Selig remains optimistic about American leadership in financial technology.

And I look forward to building on today’s milestone as the CFTC works to ensure that the new frontier of finance is built in the United States of America.