CFTC Allows Perpetual Futures to Expand from Bitcoin to Individual Stocks

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The US CommodityFutures Trading Commission has allowed perpetual futures contracts linked toindividual stocks to trade on CFTC-registered exchanges for the first time.London's trading industry is coming home!Chairman Michael S.Selig announced the development today (Tuesday), saying it extends theavailability of perpetual futures in the US beyond digital assets and intotraditional securities.The contracts, knownas Equity Perps, were deemed approved under Commission Regulation as securityfutures products. They are subject to the Commodity Exchange Act, US federalsecurities laws and the regulatory frameworks of both the CFTC and theSecurities and Exchange Commission.CFTC ExpandsPerpetual Futures FrameworkThe move follows the CFTC'sapproval earlier this year of the first Bitcoin perpetual futures contracton a CFTC-regulated exchange.In his inauguralremarks, Selig directed the agency to use its existing powers to bringperpetual derivatives into US markets, subject to appropriate safeguards.He said the latestapproval would allow US market participants to use perpetual futures for riskmanagement and price discovery within the country's regulatory framework. Healso said the move could reduce reliance on offshore venues.@ChairmanSelig Releases Statement on Equity Perpetual Futures: https://t.co/aZAEa77sE7— CFTC (@CFTC) November 3, 2026CFTC and SEC Joint Regulatory FrameworkThe approval builds onthe CFMA, which established a framework for the joint regulation of securityfutures products by the CFTC and SEC.Earlier this year, thetwo agencies also signed a memorandum of understanding to improvecoordination and cooperation.Selig said theframework addresses regulatory uncertainty that had left products such assecurity futures and equity perpetual futures in what SEC Chairman Paul S.Atkins described as a regulatory "no man's land".This article was written by Tareq Sikder at www.financemagnates.com.