Tokenization firm Ondo Finance is calling on US regulators to create a domestic framework for perpetual futures tied to individual stocks, arguing that existing securities law is flexible enough to support such products without new legislation.
Ondo's Regulatory Push
Ondo Finance has urged the Securities and Exchange Commission and the Commodity Futures Trading Commission to establish a pathway for stock-linked perpetual futures to trade within the United States. The company contends that current securities rules already provide enough room to accommodate these derivatives, meaning regulators could act without waiting for Congress to pass new laws.
Perpetual futures — contracts that never expire and allow traders to maintain leveraged positions indefinitely — have become a dominant force in offshore crypto markets. Ondo's position is that similar products tied to equities are already being traded outside US borders, leaving American investors and firms disconnected from a growing corner of the derivatives world.
Regulators can bring this activity onshore using the rules already on the books, Ondo argues.
Onshoring Derivatives Activity
The appeal aligns with a broader effort by US regulators to draw more crypto and derivatives trading back within domestic oversight. Both the SEC and CFTC have signaled interest in modernizing their approaches to digital assets, and industry players have seized the moment to press for clearer frameworks that would let compliant products operate at home.
Ondo, known for its work in tokenizing real-world assets, sees onshore stock perpetuals as a natural extension of the trend toward bringing traditional financial instruments onto blockchain rails. Supporters say a domestic regime would offer stronger consumer protections and greater transparency than offshore alternatives.
Key points raised in the push include:
- Existing securities laws can accommodate stock perpetuals without new legislation
- Offshore venues currently capture activity that could be regulated in the US
- Onshoring could improve oversight, transparency and investor safeguards
Whether regulators embrace the proposal remains uncertain, but the call adds to mounting industry pressure for the US to define how tokenized and derivative products tied to equities should be treated under domestic law.