Anytime you have ambiguity in markets … that could hurt the business,
Terry Duffy, chief executive of CME Group, told Reuters about the introduction of perpetual futures to United States markets.
The Commodity Futures Trading Commission cleared perpetual futures on individual stocks for trading on November 3, 2026, touching off an immediate turf war between Wall Street incumbents and crypto-native exchanges.
The agency permitted the products under its Regulation 40.3 review process, allowing platforms to list contracts that track company share prices without an expiration date. Kalshi launched four single-stock contracts on Qualcomm, McDonald’s, Amgen, and Costco immediately following the announcement, offering maximum leverage of 4.9 times.
CFTC Chairman Michael Selig stated on November 3, 2026, that the equity contracts were approved as security futures under the Commodity Futures Modernization Act of 2000, subjecting them to both CFTC and SEC oversight. Selig emphasized the importance of keeping American traders onshore so they can trade within the protections of the agency’s regulatory framework instead of resorting to offshore, often unregulated venues.
When we say the everything exchange, we mean everything. Getting equity perps ready for US customers. https://t.co/HMG4yHUNSg
Crypto perpetual futures volume reached $61.7 trillion in 2025, marking a 29% increase from 2024 according to CryptoQuant data cited by Reuters. Following the CFTC’s May formal approval of U.S.-listed crypto perps, financial technology firms including Kalshi, Coinbase, and Robinhood entered the market.
Market Participants File Lawsuits to Block Single-Stock Approval
Traditional exchanges and market makers moved to block the rollout hours after the regulatory clearance. A group backed by Cboe Global Markets, Citadel Securities, and other market participants filed a federal lawsuit in the Southern District of New York to overturn the single-stock approval.
CME Group also pursued legal action in the U.S. District Court for the District of Columbia to challenge the CFTC’s earlier approval of bitcoin perpetual futures.
CME Group operates a similar product called Single Stock Futures, which are available for 55 large U.S. companies with set expiration dates and have traded just over 350,000 contracts valued at approximately $3.5 billion, according to CME executive Tim McCourt.
Here's how to understand the CFTC equity perp news, simplified: The @CFTC has approved equity perp contracts for the 4 exchanges that have filed requests to approve them: – KalshiEX LLC – Coinbase Derivatives – Bitnomial (Kraken) – Nadex/OG.com All 4 of these exchanges are:… https://t.co/WV313i3Okd
Craig Donohue, chief executive of Cboe Global Markets, criticized single-stock perpetual derivatives as a troubling trend where securities products are offered on CFTC platforms outside the appropriate regulatory framework and customer protection regime established by Congress.
U.S. District Judge Valerie Caproni denied an emergency bid for a temporary restraining order in Manhattan on November 3 under case No. 1:26-cv-09608, allowing trading to proceed while the litigation moves forward. However, the judge found that the exchange alliance is likely to prove the agency exceeded its statutory authority.
Because the perpetual contracts, by definition, do not provide for a ‘sale for future delivery of a single security,’ they cannot be a security future over which the CFTC has statutory and regulatory authority,
Judge Caproni wrote in her ruling, adding that the products appear to meet the definition of swaps subject to Securities and Exchange Commission oversight.
Lawmakers and Experts Warn of Volatility and Operational Risks
The regulatory approval divided federal oversight between agencies while drawing sharp warnings from lawmakers and market participants. Elizabeth Warren criticized the move in a statement, warning that the contracts could inject severe volatility into our markets.
Meanwhile, a CFTC spokesperson defended the agency’s actions, calling the Cboe-backed lawsuit a troubling attempt to interfere with regulated markets.
Market structure experts pointed to distinct operational challenges stemming from round-the-clock trading and high borrowed funds imported from offshore venues. Rob Hocking, Cboe’s global head of derivatives, noted that product classification risks becoming a competitive tool
and called for a swift resolution. Conversely, proponents argued that bringing the instruments onshore provides vital safeguards.
Kalshi spokesperson Jake Sutch stated that the exchange introduced the contracts because they make stock price trading simpler, cheaper, and more efficient, while Franklin Templeton digital assets head Chris Perkins observed that many of these incumbents haven’t faced this type of disruption for a very long time.
TD Securities warned in its Global Market Structure Commentary that the high leverage, hedging activity, and automatic liquidations of perpetual futures could increasingly influence underlying prices and amplify volatility. Because perps do not expire and involve ongoing funding payments between counterparties, exchanges note they meet the 2010 Dodd-Frank Act’s definition of a swap.
Traditional financial market infrastructure in the U.S. is not yet fully equipped for true 24/7 markets, as evidenced when CME shelved a proposed 24/7 crude oil contract because commercial clients were unwilling to staff weekend trading desks.
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