Overview
- The CFTC said Tuesday that perpetual futures tied to individual U.S. stocks, called “Equity Perps,” are deemed security futures under Commission Regulation 40.3 and may be listed on markets that hold both a designated contract market registration and an SEC notice registration.
- Perpetual futures have no expiry and use periodic funding payments between long and short holders to keep the contract price near the underlying stock, a structure that has driven most crypto derivatives volume outside U.S. rules.
- The agency framed the move as a way to give traders regulated access and investor protections in the United States instead of forcing them to use offshore venues that lack U.S. margin, clearing and surveillance rules.
- The CFTC did not name any exchanges, list specific contracts, or set launch dates and said listings will come from eligible designated contract markets that choose to use the notice‑registration regime.
- Implementation faces legal risk because the CME Group sued the CFTC in June over prior perp approvals, arguing funding‑payment contracts may be swaps under Dodd‑Frank, so courts or securities‑side objections could delay or limit adoption.