Ondo Finance Requests SEC and CFTC to Lift Ban on Perpetual Futures Trading of U.S. Stocks

Ondo Finance Requests SEC and CFTC to Lift Ban on Perpetual Futures Trading of U.S. Stocks

Ondo Finance, a leading company in cryptocurrency and RWA (Real World Asset tokenization) based in the United States, has submitted a statement to the SEC (U.S. Securities and Exchange Commission) and CFTC (U.S. Commodity Futures Trading Commission) requesting the lifting of the ban on perpetual futures trading linked to U.S. stocks within the country.

In an effort to bring back the rapidly growing on-chain derivatives trading from overseas to the U.S., the company is presenting a new interpretation of the law. The key point of their argument is that it is possible to operate under the current U.S. securities laws and regulatory framework without the need for new legal amendments.

Typically, futures trading has a "maturity date = settlement date," but perpetual futures, as the name suggests, have no maturity. In response, the company pointed out that "there is no wording in the legal definition of 'security futures products' that mandates a fixed maturity date." They argue that the funding rate adjustment mechanism, widely used in the cryptocurrency market, maintains price correlation with physical stocks, thereby achieving functionality equivalent to traditional maturity dates.

Furthermore, they stated that the latest on-chain market data and automated margin management schemes can be sufficiently covered by existing regulations, urging regulatory authorities to adopt a flexible approach.

Overseas Platforms Surpass $8 Billion in Trading Volume Within 6 Weeks

Currently, the overseas platform (stablecoin payment-based U.S. stock perpetual futures) offered through Ondo's Panama entity has reached a cumulative trading volume of $8 billion (approximately 1.25 trillion yen) within about six weeks of service launch.

Considering that most of the target stocks are traded on major U.S. exchanges, the company strongly appeals that "bringing back trading opportunities that are flowing offshore to the domestic market (onshore) is a theme that both regulatory agencies should lead and promote."

Additionally, the company is a major player in the RWA (tokenized asset market), ranking fourth in the industry with an issuance amount of approximately $2.6 billion (about 405.26 billion yen).

Modernization of On-Chain Financial Rules Expands Among U.S. Regulators

This move coincides with the rapid progress of U.S. regulators in addressing blockchain and on-chain finance.

As market infrastructure shifts to a blockchain-based premise, there is growing attention on whether the company's proposal will set a new precedent for derivatives trading in the U.S.

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