CFTC clears stock perpetual futures for trading on US exchanges
US regulators are opening the door to stock-based perpetual futures, extending a popular crypto trading product into traditional markets amid ongoing legal disputes.
US regulators are opening the door to stock-based perpetual futures, extending a popular crypto trading product into traditional markets amid ongoing legal disputes.
Perpetual futures contracts tied to individual stocks can begin trading on regulated US exchanges for the first time, according to the Commodity Futures Trading Commission (CFTC), extending a derivatives product popularized in cryptocurrency markets into traditional equities.
CFTC Chairman Michael Selig said in a Tuesday statement that the contracts were deemed approved under CFTC Regulation 40.3 and could be offered on exchanges registered with both the CFTC and Securities and Exchange Commission (SEC) to trade security futures products.
The filings followed the CFTC’s May approval of Bitcoin perpetual futures contracts for Kalshi and separate regulatory relief allowing Coinbase to provide access to certain cryptocurrency perpetual futures listed on an affiliated foreign exchange.