Ondo urges SEC, CFTC to bring US stock perpetuals onshore
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
AI-generated summary based on the linked source; not independently verified. This is not investment advice. Verify market-moving details at the original publisher before acting. See our editorial policy, AI content policy, and financial disclaimer.
Summary
Ondo Finance has called on the US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) to regulate perpetual futures on individual stocks within the United States. The company argues that these products can fit within the existing security futures framework without new regulations. Ondo's Panama-based affiliate currently offers stablecoin-settled perpetual futures on US-listed stocks offshore, with $8 billion in cumulative volume since its launch about six weeks ago.
Why it matters
Ondo suggests that bringing perpetual stock futures trading onshore would better align with US market interests since many underlying stocks trade primarily on US exchanges. The company believes that existing regulatory frameworks are sufficient, implying no need for new rules, which could help incorporate modern onchain trading practices into the regulated environment. The source does not provide a detailed analysis of the broader market impact.
Key context
Ondo’s call comes amid broader US regulatory efforts to modernize rules around onchain products like perpetual futures and tokenized securities. The SEC and CFTC recently signed a memorandum of understanding to coordinate oversight where their jurisdictions overlap. The company also references ongoing moves by regulators to update frameworks, such as the SEC’s proposal to overhaul the transfer agent rules to support blockchain-native recordkeeping.
Key numbers and entities
Ondo Finance and its Panama-based affiliate; US regulatory bodies SEC and CFTC; Ondo reported $8 billion in cumulative trading volume as of August 14; Ondo ranks fourth among tokenized real-world asset managers with about $2.6 billion in distributed value. Hyperliquid and its native token HYPE were mentioned, with HYPE up nearly 49% in the past month, trading around $81.
What remains unclear
Details on how exactly perpetual futures on individual stocks would be regulated onshore under current rules are not fully explained. The source does not clarify the regulators’ reactions to Ondo’s letters or specific timelines for potential changes. It is also unclear how the proposed changes would affect existing offshore perpetual futures markets or investor protections.