Ondo calls on SEC and CFTC to move U.S. perpetual futures back home

Ondo Finance Calls on U.S. Regulators to Regulate Individual Stock Perpetual Futures

Ondo Finance is petitioning U.S. regulators to introduce individual stock-linked perpetual futures products to the U.S. domestic market. The company believes that such products are fully compatible with the existing regulatory framework for "securities futures" in the United States and that no new regulations are required. In an Aug. 24 opinion letter to the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), Ondo said that individual stock perpetual contracts can be structured to accommodate modern margin trading practices and the realities of on-chain trading.

The proposal addresses a long-standing question in tokenization markets: Can crypto-related perpetual contracts without traditional fixed expiry dates be considered securities futures products under current U.S. definitions? Ondo also pointed out in his filing that related activities in the offshore market have demonstrated that this market model is working effectively.

Core Points

Ondo believes that perpetual futures for individual stocks do not need to have a fixed maturity date to meet the legal definition of securities and futures products. According to documents filed by Ondo, as of August 14, its stablecoin settlement perpetual contracts for U.S. listed stocks had a cumulative trading volume of US$8 billion. Ondo said that the regular capital payment mechanism can keep the price of the perpetual contract consistent with the underlying stock, and its function is equivalent to the maturity mechanism of traditional futures. The SEC and CFTC are strengthening coordination and re-examining old market rules that may not accommodate blockchain-native bookkeeping and tokenized securities.

Ondo's argument: Existing securities and futures rules can cover perpetual contracts

In an August 24 submission to the SEC and CFTC, Ondo emphasized that regulators already have sufficient tools to regulate perpetual futures linked to individual stocks under current securities and futures guidance. The opinion letter pointed out that as long as appropriate risk controls and market structures are in place, the lack of a fixed maturity date should not be an obstacle to the product being classified as a securities futures instrument. Ondo's core point is that the regulatory definition of securities futures itself does not require a fixed maturity date. "Nothing in the legal definition of a securities and futures product requires a fixed maturity date," the company wrote in a product classification letter filed with the SEC. Its submission also emphasized how margin trading and settlement mechanisms adapt to the modern trading environment.

Ondo further pointed out that the funding mechanism can simulate the economic function played by maturity dates in traditional futures. By regularly paying funds, rather than extending the contract on a specific date, the price of a perpetual contract can be pegged to the underlying stock-a common method in the perpetual derivatives market. The company also highlighted an operating reality: the underlying stocks of many offshore perpetual products are "traded mainly on U.S. exchanges." Ondo believes U.S. regulators should not view domestic market participation as an obstacle to introducing these products into regulated venues. "Bringing this activity back to the United States should not be an open issue," Ondo said, urging both agencies to push for the shift.

Offshore transaction records as reference for compliance cases

In the filing, Ondo cited real-time trading activities conducted by its Panamanian affiliates. The company provides stableco-settled perpetual futures outside the United States linked to U.S. listed stocks. Ondo said that about six weeks after the platform was launched, cumulative transaction volume as of August 14 had reached US$8 billion. Although offshore activities are no substitute for U.S. authorizations, Ondo seems to use this as evidence that its product design can operate on a large scale and has the margin and pricing mechanisms that investors rely on. The company also provided information on its status in the tokenized real-world asset (RWA) space, noting that it ranks fourth among tokenized RWA managers by distributed value. According to RWA.xyz data cited in the filing, Ondo's distributed value as of Wednesday was approximately $2.6 billion.

Why the definition of "securities futures" is now critical

Ondo's filing comes as U.S. regulators are increasingly re-examining how old market frameworks apply to on-chain derivatives and tokenized securities. The SEC and CFTC are also strengthening public coordination to address regulatory issues in areas of cross-cutting responsibilities, including a memorandum of understanding signed in March to coordinate areas of overlapping jurisdiction. In terms of securities, the SEC has begun to modernize mechanisms related to the tokenized market. The agency recently proposed a comprehensive overhaul of its transfer agent framework, citing the growing demand in the U.S. market for blockchain-native bookkeeping and tokenized securities-an acknowledgement that part of the current infrastructure is built for traditional forms of ownership and bookkeeping.

At the same time, discussions in the derivatives space are also actively evolving. In August, President Donald Trump said CFTC Chairman Michael Selig was committed to bringing Hyperliquid to the U.S. market in a "fully compliant and legal manner." Hyperliquid is known for its on-chain perpetual futures, but the specific details of how U.S. users can access them have not been publicly disclosed by the CFTC or Hyperliquid. For Ondo, this regulatory background makes its core demand-the inclusion of individual stock perpetual futures into a recognized regulatory framework-no longer just a classification debate. If regulators accept Ondo's explanation that perpetual contracts can meet the legal requirements for securities futures, the path for other tokenized derivatives strategies seeking regulatory access in the United States will be clearer.

Next step: Regulatory stance and product design constraints

Ondo argued in his opinion letter that there is no need for a fundamental rule rewrite, and only the existing securities and futures definitions should be applied to modern perpetual contract structures, including pegging to underlying assets based on funding mechanisms and updated margin workflows. However, the question facing the market is whether the SEC and CFTC agree with this explanation, and if so, what specific implementation details will they require. Investors and builders should pay attention to whether regulators will respond with guidance or enforcement signals to clarify the classification boundaries of perpetual contracts linked to individual stocks, and whether U.S. trading venues will replicate or replace offshore trading models like the Ondo stablecoin settlement model.