Ondo Makes Case for Domestic Stock Perpetuals as US Regulators Weigh Crypto Derivatives Framework

Ondo Finance is pushing US regulators to embrace a framework that would allow perpetual futures contracts tied to individual stocks to operate domestically—arguing that existing securities laws provide sufficient guardrails for the asset class.

The platform is actively engaging with both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), making the case that stock perpetuals don't require revolutionary new legislation. Instead, Ondo contends that current regulatory infrastructure can accommodate these derivatives with minor adjustments.

This move reflects broader momentum in crypto and traditional finance to relocate derivatives activity onshore. Perpetual futures—contracts that allow traders to take leveraged positions without expiration dates—have become a cornerstone of crypto trading venues. The trillion-dollar question: can US regulators create a pathway for similar products tracking equities?

The Regulatory Gap

The tension here is real. International crypto exchanges like Binance and Bybit have built massive businesses offering stock perpetuals to US traders operating in regulatory gray zones. Ondo's pitch essentially says: why wait? Let legitimate players establish this market domestically under proper oversight.

"Existing US securities laws can accommodate perpetual futures tied to individual stocks," Ondo stated in its regulatory engagement. The company is essentially arguing that perpetual contracts aren't fundamentally different from options or other equity derivatives already approved under current frameworks.

The SEC and CFTC have been working to clarify jurisdiction over crypto derivatives. Their challenge: perpetuals blur traditional boundaries between securities and commodity regulation. A stock perpetual tied to Apple shares looks like a security. But the perpetual mechanics—perpetually renewing contracts without expiration—create commodity-like characteristics.

What's at Stake

Getting this right matters enormously. If the US stays hostile to domestic stock perpetuals, the status quo persists: American traders route orders through offshore venues, capital flows overseas, and regulatory agencies collect zero tax revenue while bearing zero oversight responsibility.

Conversely, if regulators create a clear framework, we're potentially looking at a new layer of the US derivatives market. Traditional brokerages could expand offerings. Crypto platforms could diversify beyond purely digital assets. The market intelligence opportunity here is substantial—understanding regulatory signals early could indicate which platforms are positioning for this transition.

Ondo's engagement strategy mirrors what we've seen from other crypto firms: proactive regulatory dialogue beats reactive compliance. By framing stock perpetuals as compatible with existing law rather than demanding new legislation, Ondo is lowering the political friction.