Ondo Finance publicly urged the SEC and CFTC on Sept. 2 to permit perpetual futures on individual US stocks onshore, arguing existing securities law can accommodate the products as regulators seek to repatriate derivatives activity from offshore venues.
A tokenized-asset protocol is pressing Washington to greenlight a product class that has so far lived offshore. Ondo Finance on Sept. 2 formally asked the SEC and CFTC to allow perpetual futures tied to individual US stocks to trade onshore, contending that the existing securities framework already covers these instruments.
The company argues that perpetual futures on individual equities fall within the current scope of US securities law, according to its public statement to both agencies. The request arrives as US authorities have signaled a broader intent to pull derivatives trading back from offshore venues that have captured significant volume in the crypto derivatives market.
The proposal targets perpetual futures — contracts with no expiry date that track the price of an underlying asset — a product class that has grown primarily on offshore crypto exchanges. Ondo's push would create a regulated onshore venue for these instruments, potentially bridging traditional equities with tokenized infrastructure.
If the SEC and CFTC accommodate the proposal, it could open a new regulated market for stock perpetuals and expand Ondo's product footprint beyond its current tokenized-asset offerings. The outcome will hinge on whether regulators determine that existing securities law — rather than new legislation — can govern these hybrid products that sit at the intersection of equities and crypto derivatives.
Ondo's advocacy reflects the growth of the real-world asset tokenization sector, where protocols have expanded from tokenizing bonds and funds into more complex financial instruments. The company's move into derivatives marks a significant step for a sector that has largely focused on tokenizing traditional assets rather than creating new derivative products.
The regulatory question at the heart of the proposal is jurisdictional. Perpetual futures on individual stocks touch both the SEC's authority over securities and the CFTC's oversight of derivatives, raising questions about which agency would take the lead on approving and supervising such products. The two agencies have historically divided oversight of crypto products, with the SEC asserting authority over tokens deemed securities and the CFTC overseeing derivatives markets.
For Ondo, the stakes are structural. The company has positioned itself as a bridge between traditional finance and on-chain infrastructure, and a favorable regulatory outcome would validate its expansion thesis while attracting institutional capital seeking compliant derivatives exposure to US equities. A rejection or prolonged review, by contrast, would leave the product class to continue trading offshore, outside the reach of US securities law.
The SEC and CFTC have not yet publicly responded to Ondo's request as of press time. Industry observers will be watching whether the agencies treat the proposal as a test case for how tokenized derivatives products can be accommodated within the existing US regulatory framework.
This article is for informational purposes only and does not constitute investment advice.
