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Published · 4 min read

What Chairman Selig's November 3 Statement Means for Fintechs

Starting today, US-regulated exchanges can list perpetual futures on individual stocks. CFTC Chairman Michael Selig announced on November 3, 2026 that these "Equity Perps" were deemed approved as security futures, so they sit under both the CFTC and the SEC. For fintechs, a product that formerly traded mainly offshore now has a regulated US home, weakening the case for sending US users to offshore stock perps.

Liz PaisnerLiz PaisnerManaging Partner

What the CFTC did

The contracts are perpetual futures on individual equity securities. They have no expiry date and track the underlying stock's price. The statement makes four points:

  • Approved by lapse, not by order. The contracts were "deemed approved" under CFTC Regulation 40.3. That means the review period ran out without objection, so there is no detailed approval order to read.
  • Security futures, not commodity futures. They fall under the Commodity Futures Modernization Act of 2000 (CFMA), which created security futures. The CFMA brings in the federal securities laws and the SEC alongside the CFTC.
  • Dual-registered venues only. They may only trade on CFTC-registered exchanges that are also notice-registered with the SEC as securities exchanges.
  • Built on the bitcoin perp. The statement presents equity perps as the next step after the CFTC approved Kalshi's bitcoin perpetual on May 29, 2026. It also cites the agencies' March 2026 memorandum of understanding.

The stated goal is to keep US traders on regulated venues rather than "offshore, and often unregulated, venues." The statement names no exchange or stocks, sets no launch date beyond today, and does not mention an SEC order.

Implications for fintechs

The main effect is a legal US route for single-stock perps, a product that, for US users, has thus far been primarily offered offshore or not at all. The implications vary by type of business:

If you are… What changes
A brokerage or trading app You can add stock perps for US customers, but only through the security-futures route. That route requires a firm registered with both the CFTC and the SEC, either as a broker-dealer or as a futures commission merchant.
A wallet or front end routing to offshore stock perps US access is harder to defend now that a regulated alternative exists. A stock perp is a security product, so US access raises SEC risk on top of CFTC risk.
Relying on CFTC no-action relief for wallets or passive software That relief was written for CFTC-registered venues and brokers. Because these are security futures, check the SEC side too, including its April 2026 statement on when a trading interface is a broker.
A tokenized-stock platform Once contracts list, you will compete with a regulated, leveraged way to get stock exposure. Expect regulators to compare your product’s protections against it.
An exchange The template is set: dual registration plus a Regulation 40.3 filing. A deemed approval gives you less written guidance to rely on than a full order would.

Open questions

The statement is short, leaving open several questions consequential for fintechs:

  • Which exchange, and which stocks. Neither is named. Kalshi, Coinbase Derivatives and Bitnomial have each filed for equity perps, but the statement does not say whose contracts were deemed approved.
  • Leverage, margin and funding. The statement says nothing about margin levels, how funding payments work, or how they fit the existing security-futures margin rules.
  • Who can trade them. The statement does not address retail eligibility or suitability.
  • The SEC's view. The statement mentions the SEC only through Chairman Atkins’s “no man’s land” remark. No SEC order or rule filing is cited.
  • Legal durability. CME's lawsuit challenging the CFTC's treatment of bitcoin perps as futures (CME v. Selig, D.D.C. No. 1:26-cv-02157) is pending. The statement is the chairman's alone, from a Commission that currently has only one member.

What to do now

  1. Map your stock-linked products. List every perp, swap, CFD-style or tokenized product referencing a single stock, and note whether US users can reach it.
  2. Re-test your US-access controls. With a regulated alternative now permitted, regulators will ask why US users reached an offshore version. Your geofencing, terms and marketing should all say the same thing.
  3. Analyze both regimes. For anything touching a stock perp, check SEC broker and exchange questions as well as CFTC registration.
  4. If you want to offer stock perps, pick a route. Either partner with a dual-registered firm or plan your own registration. Budget time, because both regulators are involved.
  5. Watch for follow-up developments. These include the listed contract terms, any SEC statement, and the CME v. Selig ruling.

Sources

This post is general information, not legal advice.

Key takeaways
  • US-regulated exchanges can now list perpetual futures on individual stocks starting November 3, 2026, following CFTC Chairman Selig's announcement that they were deemed approved as security futures.
  • These equity perpetuals were approved by lapse under CFTC Regulation 40.3, meaning the review period expired without objection rather than through a formal approval order.
  • The contracts fall under dual regulation by both the CFTC and SEC, and may only trade on CFTC-registered exchanges that are also notice-registered with the SEC as securities exchanges.
  • The approval creates a legal US path for single-stock perpetual futures, a product previously offered mainly offshore to US users.
  • The stated regulatory goal is to keep US traders on domestic regulated venues rather than offshore or unregulated platforms.
  • The announcement builds on the CFTC's May 2026 approval of Kalshi's bitcoin perpetual and the agencies' March 2026 memorandum of understanding.
TL;DR
Approval mechanismEquity perpetuals were deemed approved by lapse under CFTC Regulation 40.3, not by explicit order.
Regulatory classificationThe contracts are security futures under the 2000 CFMA, bringing both CFTC and SEC jurisdiction.
Trading venue requirementsOnly CFTC-registered exchanges that are also SEC notice-registered may list these products.
Regulatory precedentThe approval follows the May 2026 bitcoin perpetual approval and March 2026 agency MOU.
Policy objectiveThe goal is to bring US traders from offshore, unregulated venues onto domestic regulated platforms.
Implementation timelineTrading may begin immediately as of November 3, 2026, though no specific exchanges or stocks were named.
FAQs

What are equity perpetuals and how do they work?

Equity perpetuals are perpetual futures contracts on individual equity securities that have no expiry date and track the underlying stock's price. Unlike traditional futures, they do not expire or require rolling into new contracts.

Why do equity perpetuals require both CFTC and SEC regulation?

Under the Commodity Futures Modernization Act of 2000, these products are classified as security futures. This classification brings in federal securities laws and SEC oversight alongside the CFTC's commodity futures jurisdiction.

Can any exchange list equity perpetuals immediately?

No. Only exchanges that are both CFTC-registered and notice-registered with the SEC as securities exchanges may list these products. Dual registration is a prerequisite.

What was the approval process for equity perpetuals?

They were deemed approved under CFTC Regulation 40.3, meaning the regulatory review period expired without objection. There is no detailed approval order documenting the decision.

How does this affect US users currently trading stock perpetuals offshore?

It creates a legal US alternative to offshore platforms. The regulatory goal is to bring US traders onto domestic regulated venues rather than offshore or unregulated platforms where these products previously traded.

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