Ondo Finance urges US regulators to allow stock perpetuals

Ondo Finance has submitted three comment letters to the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) requesting that regulators allow perpetual futures tied to individual US-listed stocks to trade domestically.

The firm argues that these products can be accommodated under the existing security futures framework established by Congress in 2000. Ondo contends that the absence of a fixed expiration date does not disqualify a contract from being classified as a security futures product, noting that “nothing in the statutory definition of a security futures product requires a fixed expiration date.”

To maintain price alignment with underlying assets, these perpetual contracts utilize recurring funding payments. Ondo’s Panama-based affiliate, Ondo Global Panama Inc., already operates a similar product offshore via Ondo Perps, which recorded approximately $8 billion in cumulative trading volume by August 14, following its launch in early July.