# CFTC approval and legal challenges to equity perpetuals

> Developing situation record from CLSTR: https://clstr.news/situations/cftc-regulation-of-perpetual-derivatives
> Updated: 2026-11-03T15:24:58.000Z. Sources: 22. Developments: 3.

The Commodity Futures Trading Commission (CFTC) has announced that perpetual futures contracts tied to individual stocks, referred to as “Equity Perps,” can begin trading on regulated U.S. exchanges. CFTC Chairman Michael Selig stated the decision aims to onshore these products, allowing American traders to access leveraged, expiration-free instruments under U.S. regulatory safeguards instead of using offshore, unregulated venues. Under Regulation 40.3, these are deemed security futures products.

To facilitate trading, exchanges must be dually registered with both the CFTC and the Securities and Exchange Commission (SEC) as notice-registered national securities exchanges. Several platforms have moved toward implementation, with Kalshi launching its first batch of U.S. stock perpetual contracts covering companies such as Amgen, Costco, McDonald’s, and Qualcomm. Other entities, including Coinbase Derivatives and Bitnomial, have previously submitted applications for similar products.

The move has faced significant opposition. The reform group Better Markets characterized the instruments as a “gambling product,” expressing concerns that high leverage could cause rapid, total investment losses. The Securities Industry and Financial Markets Association (SIFMA) has also called for a review regarding potential impacts on liquidity, investor protection, and market manipulation.

Concurrently, Cboe Global Markets has joined a legal challenge led by the Capital Markets Alliance, which includes Citadel Securities and the Healthy Markets Association. The alliance filed a lawsuit in federal court seeking to overturn the approval, arguing these products should be classified as security-based swaps under SEC jurisdiction. While a federal judge denied an emergency request to halt trading, the court noted that the challengers are “likely to succeed” in their argument that the CFTC may have exceeded its legal authority.

## Claims

- The CFTC approved equity perpetual futures as security futures products under Regulation 40.3. (reported by 13 sources)
- Exchanges must be dually registered with the CFTC and SEC to trade these products. (reported by 13 sources)
- The Capital Markets Alliance filed a lawsuit to revoke the CFTC approval. (reported by 8 sources)
- The CFTC previously approved Kalshi's Bitcoin perpetual futures on May 29. (reported by 3 sources)
- SIFMA requested the SEC and CFTC to review the effects of the products before launch. (reported by 3 sources)
- Kalshi has launched its first batch of US stock perpetual contracts covering Amgen, Costco, McDonald’s, and Qualcomm. (reported by 2 sources)
- Better Markets described single-stock perpetual futures as a gambling product. (reported by 1 source)

## Timeline

### 2026-11-03: Cboe Global Markets challenges CFTC over perpetual derivatives approval

Cboe Global Markets has joined a legal challenge against the CFTC, arguing that perpetual derivatives tied to U.S. stocks and ETFs should be regulated under securities laws rather than commodity rules.

4 sources. https://clstr.news/cluster/cboe-global-markets-challenges-cftc-over-perpetual-derivatives-approval

### 2026-11-03: CFTC approves equity perpetual futures for US exchanges

The CFTC has approved equity perpetual futures for regulated US exchanges, a move facing legal challenges from a group backed by Cboe and Citadel Securities regarding regulatory jurisdiction.

20 sources. https://clstr.news/cluster/cftc-approves-trading-of-individual-equity-perpetual-futures

### 2026-10-05: CFTC grants U.S. exchanges temporary exemption for perpetual futures

The CFTC has granted temporary relief allowing U.S. exchanges to offer perpetual futures contracts, which lack fixed expiration dates, expanding options for regulated domestic derivatives markets.

2 sources. https://clstr.news/cluster/cftc-grants-us-exchanges-temporary-exemption-for-perpetual-futures

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Cite as: CFTC approval and legal challenges to equity perpetuals. CLSTR, https://clstr.news/situations/cftc-regulation-of-perpetual-derivatives