CFTC approves individual stock perpetual futures trading in US for the first time

The Commodity Futures Trading Commission approved the ability for exchanges in the United States to offer perpetual futures contracts tied to individual stocks — just months after those assets were put into the spotlight by President Donald Trump.

On Tuesday, CFTC Chair Michael Selig greenlit the ability to trade those perpetual futures contracts for the first time in the U.S. for platforms.

"This expansion marks a significant step towards allowing U.S. market participants, consistent with applicable law, to avail themselves of the advantages of perpetual futures that have led to their emergence as widely sought tools for risk-management and price-discovery," Selig said.

Perpetuals, or perps, are a type of futures contract that don't have an expiration date and allow people to bet on the price movement of assets without owning them directly.

Perpetual futures contracts surged in popularity over the past year, particularly after disruptions in global supply chains in the Middle East earlier this year at the onset of the war, after the U.S. and Israel conducted missile strikes on Iran, which triggered supply shocks. That happened over the weekend, so traditional oil futures markets were closed, but platforms like Hyperliquid operate 24/7, so much of the trading happened onchain.

Over the past year, the CFTC has approved a few perpetual futures contracts. The agency first opened the door for bitcoin perpetual futures contracts in the U.S. when its staff greenlit KalshiEX and Coinbase to list the products. Then in June, the CFTC released a request for comment on crude oil perpetual contracts and 24/7 trading.

Perpetuals futures contracts have also caught Trump's attention. In August, he said he wanted the CFTC to work to bring Hyperliquid into the U.S.

Both the SEC and CFTC would oversee the contracts, Selig said on Tuesday.

"This framework recognized the complementary roles of the CFTC and SEC in overseeing American financial markets by providing a pathway for innovation at the intersection of the U.S.," Selig said.