The US Commodity Futures Trading Commission (CFTC) has cleared the way for perpetual futures tied to individual stocks to trade on regulated US exchanges for the first time, bringing a trading model made popular on crypto venues into traditional equity markets.
CFTC Chairman Michael Selig announced on Tuesday, November 3, that the contracts — known as equity perps — were deemed approved as security futures products under Commission Regulation 40.3. They will be subject to oversight by both the CFTC and the Securities and Exchange Commission (SEC).
“Bringing perps onto regulated markets ensures that American investors and traders can access these products within the protections of the CFTC’s proven regulatory framework,” Selig said in a statement reported by Reuters.
What is a perpetual future?
A perpetual future is a derivative contract with no expiry date. Unlike a standard futures contract, which expires on a set date and must be rolled over, a perpetual contract lets traders hold a position indefinitely, provided they meet margin requirements.
Perpetual futures became widely used in crypto trading, particularly on offshore exchanges. The CFTC’s move follows its approval earlier this year of the first Bitcoin perpetual futures contract on a CFTC-regulated exchange, extending the same model to individual equities.
What the approval does — and does not — decide
The approval settles regulatory eligibility, not the commercial rollout. Selig’s statement did not identify which exchanges would offer equity perps, which stocks would be available at launch, or when trading in specific contracts would begin.
To offer the contracts, a venue must be a CFTC-registered designated contract market that is also notice-registered with the SEC to trade security futures products. The contracts remain subject to the Commodity Exchange Act, federal securities laws, and both regulators’ frameworks.
The legal foundation rests on the Commodity Futures Modernization Act of 2000, which established joint CFTC–SEC oversight of security futures products. The two regulators also signed a memorandum of understanding earlier in 2026 to coordinate supervision of hybrid products.
A legal challenge has already been reported
CryptoNews reported that a trade group called the Capital Markets Alliance sued the CFTC in federal court in Manhattan on November 3, seeking to halt trading while the case is heard. Its members were reported to include Cboe Global Markets and Citadel Securities.
According to that report, the group argues the contracts are security-based swaps that fall under the SEC’s sole jurisdiction, and alleges violations of the Administrative Procedure Act. No ruling granting that relief has been reported, and the lawsuit does not by itself reverse the CFTC’s approval.
Why it matters
For traders, equity perps offer leveraged exposure to a single stock without owning the shares and without an expiry date. For exchanges, they open a new product line at the boundary between crypto-style derivatives and traditional Wall Street trading.
That boundary is also the source of risk. Perpetual futures can involve leverage, so losses can be large, and the funding and margin terms for individual stock contracts have not yet been disclosed by any exchange. This article is not investment advice.
What to watch next
The next concrete steps are disclosures from exchanges: which venues qualify, which stocks they list first, what leverage and margin rules apply, and how the reported lawsuit proceeds. Until an exchange names its first contracts, the approval remains a regulatory opening rather than a trading volume story.
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Frequently asked questions
What is an equity perp? A perpetual futures contract tied to an individual company’s stock, with no fixed expiry date, traded on a regulated exchange under CFTC and SEC oversight.
Can traders buy equity perps today? The CFTC has cleared eligible venues to offer them, but no exchange, stock list or launch schedule was named in the announcement.
Who regulates equity perps? Both the CFTC and the SEC, as security futures products under the Commodity Futures Modernization Act of 2000.
Sources
Reuters — Trading in single-stock ‘perps’ can begin, US regulator says (Nov 3, 2026)
CoinDesk — CFTC brings crypto-style perpetual futures to US stock markets (Nov 3, 2026)
TradingView — CFTC Allows Perpetual Futures to Expand from Bitcoin to Individual Stocks (Nov 3, 2026)
CryptoNews — Stock Perpetual Futures Face Lawsuit Over CFTC Trading Approval (reported Nov 3, 2026)
