- The CFTC approved stock perpetual futures for US exchanges on November 3 under Chair Michael Selig, using the Commodity Futures Modernization Act of 2000 as its legal basis.
- The Capital Markets Alliance, backed by Cboe, Citadel Securities, and the Healthy Markets Association, filed a lawsuit in New York federal court hours after the approval.
- The group argues the contracts are security-based swaps under SEC jurisdiction, not security futures, and that the CFTC violated the Administrative Procedure Act by failing to properly justify its decision.
- The CFTC called the lawsuit “troubling,” saying markets “should be governed by law, not litigation campaigns intended to block innovation”; the SEC declined to comment.
CFTC Clears Stock Perpetuals
The US Commodity Futures Trading Commission reached a breakthrough when they approved single stock perpetual futures for trading on CFTC-registered exchanges, on November 3.
@ChairmanSelig Releases Statement on Equity Perpetual Futures: https://t.co/aZAEa77sE7
— CFTC (@CFTC) November 3, 2026
Source: cftc.com
The new class of products were approved after being signed off by Chair Michael Selig, as their approval is based upon the Commodity Futures Modernization Act of 2000 and Commission Regulation 40.3.
Today, equity perps can begin trading for the first time on @CFTC registered exchanges.
This move reflects my commitment to ensuring that America’s markets remain the most innovative, liquid, and well-regulated in the world. Instead of being forced to turn to offshore, unregulated venues to access equity perpetual futures, Americans may now access equity perps on CFTC-regulated markets subject to robust safeguards.
I appreciate the continued partnership of @SECGov and @SECPaulSAtkins as we work to further harmonize our agencies’ regulatory initiatives.
— Mike Selig (@ChairmanSelig) November 3, 2026
After ICE announced a partnership with Trade.xyz (building Hyperliquid style perpetuals) on October 29, major traditional finance entities had already started laying the groundwork.
Cboe & Citadel Strike Back
Within hours of the approval, the Capital Markets Alliance (backed by Cboe, Citadel Securities, and the Healthy Markets Association) filed a lawsuit in a New York Federal court. It claims single stock perpetual contracts should be classed as security swaps and therefore fall under the SEC’s jurisdiction.
Source: cboe.com
The group also claims the CFTC was incorrect to classify the contracts as security futures. It adds that the CFTC violated the Administrative Procedure Act as there wasn’t sufficient reasoning and consideration of the risks that come with providing such products to investors.
The issue is about providing investor protection for securities and the rule of law, Cboe CEO Craig Donohue said. Another backer, the American Securities Association, claimed the CFTC had avoided the SEC’s jurisdiction and ignored Congress’ ban on providing security based swaps to retail investors.
Jurisdiction Battle & What’s At Stake
The lawsuit creates a high stakes battle between the CFTC and SEC, and traditional exchanges and crypto natives for control of one of the most profitable product types in modern finance.
The CFTC has called the lawsuit an attempt to stop innovation and said markets should be controlled by laws not lawsuits. The SEC has declined to comment. The Alliance is asking the court to recognise the contracts as security swaps, reverse the approvals and prevent any trading.
This could decide if stock perpetual futures (which have seen hundreds of billions of monthly volume in offshore and decentralised markets) will ever get off the ground in the regulated market.
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