CFTC Authorizes Perpetual Stock Futures in the United States

The Commodity Futures Trading Commission has authorized the trading of perpetual futures contracts on individual stocks. This marks the first time this product, common on crypto platforms, enters the U.S. stock market under federal oversight.

Perpetual contracts do not have a fixed expiration date. Price adjustments occur through periodic payments between buyers and sellers to keep the derivative value aligned with the spot market. The structure aims to replace reliance on offshore platforms that operate outside U.S. jurisdiction.

Agency chair Michael S. Selig stated that the measure integrates these products into the country's legal framework. The contracts will be classified as security futures products. They must be listed on exchanges that hold dual registration with the CFTC and the Securities and Exchange Commission.

The decision expands on an initiative that began in May when the agency approved the first perpetual Bitcoin contract in U.S. territory. Since then, the agency has expanded permissions to include assets such as gold and silver. Details regarding launch dates and which exchanges will offer the assets have not yet been disclosed.