Equity perpetual futures get US regulatory clearance

Equity perpetual futures have cleared a US regulatory hurdle. On November 3, CFTC Chairman Michael S. Selig said the contracts can begin trading on exchanges registered with both the CFTC and SEC for security futures, extending a derivatives format associated with crypto markets to individual stocks. The CFTC statement did not name a specific exchange or contract, or give a launch date.

The decision sets a route to listing, not a launch date for any particular product. Proposed contracts can involve leverage and liquidation risk, and industry groups want more review before trading begins.

• The CFTC deemed the contracts approved under Regulation 40.3 as security futures products.
• Only qualifying designated contract markets with SEC notice registration for security futures can list them.
• Proposed contracts have no fixed expiry. Coinbase’s filing describes cash-settled contracts that do not convey stock ownership.
• SIFMA says four exchanges filed proposals in September, but the CFTC named no exchange, contract or launch date.

Timeline of the decision

1. May 29, 2026: The CFTC approved KalshiEX’s bitcoin-linked BTCPERP contract. The commission said other asset classes would require case-by-case review under Regulation 40.3.
2. September 18, 2026: Bitnomial, Coinbase Derivatives and KalshiEX filed proposals to list equity contracts, according to SIFMA’s November 2 summary.
3. September 29, 2026: North American Derivatives Exchange filed a proposal, bringing the total identified by SIFMA to four.
4. November 2, 2026: SIFMA urged the SEC and CFTC to allow more review and public input, citing surveillance, manipulation and low-liquidity concerns.
5. November 3, 2026: Selig said the contracts can begin trading on exchanges that meet dual-registration requirements. The CFTC announcement did not say when a first listing will go live.

How the contracts work

Unlike conventional futures, a perpetual has no scheduled expiration. Long and short positions exchange periodic funding payments intended to keep the contract price close to the underlying share price. A Coinbase Derivatives filing describes one proposed design in which buyers pay sellers when the contract trades above the share price, at up to 0.10% an hour.

The Coinbase filing describes proposed contracts as cash-settled, with no transfer of stock ownership. According to Better Markets, holders would not receive voting rights or dividends through the derivative. The SEC filing describes a proposed structure, not an operating market.

Leverage is a key risk. BeInCrypto reported that Kalshi’s filing proposed allowing a trader to post 15.5% of a position’s value as margin. That figure describes a proposal, not a requirement for every exchange. In leveraged designs, a sharp move against a position can trigger liquidation and rapid losses.

BeInCrypto also reported that Kalshi’s September filing covered 58 contracts, including 55 individual stocks and two funds tracking the S&P 500 and Nasdaq-100. These filed details do not confirm a launch.

Reactions and the market context

Selig said the move could give US market participants access to perpetual products within a domestic regulatory framework rather than sending activity to offshore venues. That is his stated rationale. The CFTC has not reported customer uptake or shown that trading will move onshore.

SIFMA called for further review of possible effects on underlying stock markets, cross-market surveillance and whether the products meet the legal definition of security futures. The issue involves both securities and commodities rules.

The regulatory classification of perpetuals is disputed. Bitcoin Magazine reported that CME Group sued the CFTC in June over its treatment of Kalshi’s bitcoin perpetual. CME argued that contracts with funding payments should be treated as swaps under Dodd-Frank, not futures. The case remains pending, the outlet reported. Equity products also involve the SEC, adding another regulator to the discussion.

The sources reviewed here provide no direct stock-market reaction to the November 3 announcement. As broader crypto-market context, Bitcoin was $77,347 at 15:13 UTC on November 3, down 0.69% over 24 hours, according to CoinGecko data. That movement does not establish a response to the CFTC decision.

The regulatory backdrop has developed in stages. The CFTC’s May bitcoin contract decision set a precedent, while a March 11 memorandum between the CFTC and SEC established a framework for coordination, according to Bitcoin Magazine. The agencies also set out a joint crypto asset taxonomy earlier in 2026, the outlet reported.

What to watch next

Details to watch in future exchange announcements include eligible stocks, margin requirements, funding formulas, trading hours and how exchanges handle sharp price moves. The CFTC announcement did not provide these operational details.

Regulatory scrutiny could continue alongside any launch plans. SIFMA’s request for more public review, the pending CME lawsuit and the SEC’s shared oversight could shape the path from deemed approval to available contracts. The CFTC has said other asset classes require case-by-case review, and the May bitcoin decision does not establish that equity products will attract similar volume or behave the same way.

These derivatives involve volatility, leverage, forced liquidation and exchange or operational risk. They provide price exposure, not stock ownership. A sharp move against a leveraged position can trigger liquidation and rapid losses. This report covers a regulatory development, not a recommendation to trade.

FAQ

What are equity perpetual futures?

They are derivatives that track individual stocks and have no fixed expiration. Proposed US versions use periodic funding payments and cash settlement rather than transferring shares.

Can people trade them in the US now?

The CFTC says eligible exchanges can list them, but its November 3 statement named no first live contract or launch date. Exchanges must meet CFTC and SEC registration requirements for security futures.

What are the main risks?

Leverage can magnify losses, and sharp price moves can trigger liquidation. Funding payments are part of the contract framework, and the contracts do not provide stock ownership rights. Exchange, legal and market risks remain.

Sources

• CFTC Chairman Selig Releases Statement on Equity Perpetual Futures (www.cftc.gov)
• Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to the Adoption of Coinbase Derivatives, LLC’s Rules Governing Cash Settled Futures on Individual Equity Securities and Exchange-Traded Fund Shares, Including Perpetual Single-Stock Futures (www.sec.gov)
• CFTC Opens U.S. Stock Market to Equity Perpetual Futures (Bitcoin Magazine)

This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrencies are highly volatile; always do your own research before investing.