Ondo Finance said on August 24 that US rules already allow perpetual contracts based on US stocks, arguing that the SEC and CFTC do not need to write a fresh rulebook for the product. In a comment letter, the crypto-focused firm said the existing security futures framework is already broad enough to accommodate stock-based perpetual contracts. For traders, the message is simple: the debate is less about whether the product can exist in the US and more about how regulators choose to interpret the rules already on the books.
What did Ondo Finance say?
Ondo Finance told both the Securities and Exchange Commission and the Commodity Futures Trading Commission that new regulations are not required to permit trade in perpetual contracts tied to US equities. The company made the argument in a comment letter dated August 24, according to the source story.
The core claim is that the current legal framework for security futures already covers the type of product Ondo is discussing. That matters because perpetual contracts, often shortened to perps, are a familiar structure in crypto markets, where they are widely used to gain leveraged exposure without a traditional expiry date.
Why does the existing framework matter?
By pointing to security futures, Ondo is arguing that regulators already have a category that can house stock perps without creating a brand-new product class. That is a significant distinction for market participants because it suggests the barrier may be regulatory interpretation rather than outright prohibition.
For traders, a framework-based approach can be easier to navigate than a full rule rewrite. Existing categories typically come with known compliance expectations, clearer market structure questions, and a more predictable path for product design.
What Ondo’s position signals
- The firm sees stock-based perpetual contracts as compatible with current US rules.
- It is pushing back on the idea that new regulations must come first.
- The comment letter was directed at both the SEC and the CFTC.
- The argument rests on the security futures framework, not on a new legal category.
What is a stock perp in this context?
Perpetual contracts are derivatives that do not have a fixed expiration date. In crypto, they are commonly used to track the price of an asset while allowing traders to maintain positions continuously, subject to funding and margin mechanics. Ondo’s letter, as described in the source, applies that model to US stocks.
The key issue is not the trading mechanic alone, but whether US securities and derivatives law can already support that structure. Ondo’s answer is yes. The company said the security futures regime already accommodates the product, which would mean regulators do not need to invent a new category to permit it.
Why should crypto traders care?
Even though the source does not describe a launch timeline or product details, the statement is notable because it sits at the intersection of crypto market design and US regulation. If a stock-perpetual product is treated as fitting within existing rules, that could shape how future tokenised or derivatives-based offerings are framed in the US.
For retail traders, the story is a reminder that innovation in crypto often depends as much on legal structure as on price action. A product can be technically straightforward and still face a long debate over classification, oversight, and venue requirements.
What happens next?
The source does not say how the SEC or CFTC responded to Ondo’s letter. For now, the important development is the argument itself: Ondo is publicly urging regulators to treat stock perps as something the existing framework can already cover.
That means the next step is likely a regulatory review or continued dialogue, rather than an immediate change in market access. Traders watching ONDOUSD and broader crypto-linked derivatives themes will want to see whether the agencies accept that interpretation or push back on it.
Bottom line: Ondo Finance is telling US regulators that stock perpetual contracts do not require a new rulebook, only recognition that current security futures rules may already be enough.
Risk disclaimer: Crypto and derivatives markets are volatile and complex; this article is for information only and is not investment advice.
