The SEC and CFTC join forces! The fight over regulatory authority for single-stock perpetual contracts escalates — Are new rules coming for on-chain U.S. stock trading?

The CFTC (under Chairman Michael Selig) determined that perpetual futures on individual equity securities (“Equity Perps” or single-stock perps) can trade on CFTC-registered designated contract markets that are also notice-registered with the SEC for security futures. These were deemed approved under Regulation 40.3 as security futures products under the Commodity Futures Modernization Act framework, subject to joint CFTC-SEC oversight. This extends the perpetual structure (no fixed expiration, funding mechanisms) previously advanced for crypto into traditional single stocks, aiming to bring activity onshore under U.S. regulation rather than leaving it offshore.
Cftc
An industry group (Capital Markets Alliance Association, including members like Cboe and Citadel Securities) sued the CFTC, arguing the products are more properly security-based swaps under SEC jurisdiction and seeking to vacate the approvals. Notably, the SEC filed an amicus brief supporting the CFTC’s position and the coordinated framework, rejecting claims of overreach and emphasizing inter-agency cooperation via their MOU. Court proceedings are ongoing (preliminary injunction considerations reported).
Cryptobriefing
This does not immediately open broad “on-chain U.S. stock trading” for retail in the decentralized sense—trading is contemplated on regulated DCMs with dual registration, not unrestricted blockchain venues for U.S. persons. It does create a clearer regulated pathway for perpetual-style equity derivatives in the U.S. New formal rules may evolve through the litigation outcome, any SEC abrogation windows, or further joint guidance. The development reduces some “no man’s land” uncertainty but leaves jurisdictional and product-definition fights active. Market participants should monitor court developments, specific exchange listings, and eligibility/margin rules closely.