Ondo Finance Seeks Clarification on Perpetual Contracts for US Stocks
Ondo Finance has submitted a comment letter to the SEC and CFTC arguing that new regulations are not required to allow trade in perpetual contracts based on US stocks. The company claims that the current framework of security futures accommodates the product, as it settles in cash and does not have an expiration date.
Ondo's subsidiary, Ondo Global Panama Inc., offers a platform for non-US customers to trade US-listed stocks using stablecoin-settled perpetual futures contracts. The company reports that over $8 billion has been traded on its platform since its launch in June, exceeding the amount of tokenized assets worth $4 billion in its ledger.
The argument presented by Ondo is supported by the Blockchain Association, which has also released a letter calling on regulators to adopt the current security-futures framework for equity perpetuals. The association warns that if this does not happen, it may be harder to attract liquidity back as user habits and market depth harden around foreign venues.
The regulatory environment is complex, with the CFTC greenlighting Kalshi's BTCPERP in May and characterizing it as futures contracts. However, the resolution of a lawsuit filed by CME Group against the CFTC could determine the future of onshoring perpetual contracts.