Gillibrand’s Son Builds Perpetuals Exchange Seeking CFTC, SEC Oversight
Theodore Gillibrand, son of U.S. Sen. Kirsten Gillibrand, has raised $30 million to build American Perpetuals Exchange Corporation, a derivatives venue that plans to seek licenses from both the Commodity Futures Trading Commission and the Securities and Exchange Commission. The venture represents a first-of-its-kind attempt to bring perpetual futures contracts under a dual U.S. regulatory framework.
Fortune reported on June 18, 2026 that APEC raised the capital in a round led by Lux Capital, whose spokesperson confirmed it led the fundraise. The report said APEC plans to seek a CFTC license to list perpetuals tied to equities and stock indices rather than cryptocurrencies.
According to two anonymous sources cited by Fortune, the deal valued APEC at $300 million. That figure has not been independently confirmed in any public filing.
What APEC’s SEC filing reveals about its licensing plan
A presentation posted on the SEC’s website shows that APEC intends to apply for Designated Contract Market status with a special exemption to list perpetual futures on single-name equities under joint CFTC and SEC oversight. The deck lists Theodore Gillibrand on the company’s team and states APEC is seeking significant capital to support the DCM and DCO licensing process.
Perpetual futures are derivative contracts with no expiration date, allowing traders to hold leveraged positions indefinitely. They account for roughly 90% of crypto derivatives volume globally, with over $100 billion traded daily. Equity perpetuals alone see more than $1 billion in daily volume on offshore platforms, according to the same APEC presentation.
The SEC-CFTC Harmonization Initiative meeting log confirms that APEC and its advisers met with the initiative on June 4, 2026, placing the proposal inside a formal inter-agency process.
Why dual CFTC and SEC oversight is unprecedented for perpetuals
The CFTC has traditionally overseen commodity futures and swaps, while the SEC regulates securities. Most crypto perpetuals have operated offshore, outside the jurisdiction of either agency. APEC’s approach of seeking both agencies’ oversight simultaneously is a departure from how existing U.S. derivatives venues are structured.
The distinction matters because APEC wants to list perpetuals tied to individual stocks, not just crypto assets. Single-name equity perpetuals sit in a jurisdictional gray zone: they reference securities (SEC territory) but function as futures contracts (CFTC territory). Dual oversight would signal an attempt to satisfy both agencies rather than argue that one has exclusive authority.
How perpetuals regulation differs from spot crypto oversight
Spot crypto markets in the U.S. remain subject to an evolving patchwork of state and federal rules, with ongoing debate over which tokens qualify as securities. Perpetuals, by contrast, are clearly derivatives, which places them under the CFTC’s existing statutory framework. The complication APEC introduces is that equity-linked perpetuals reference underlying assets the SEC already regulates.
On May 29, 2026, the CFTC approved a true bitcoin perpetual contract and issued policy guidance for perpetual listings, a move that CFTC Chairman Mike Selig framed as fulfilling a commitment to onshore perpetual trading.
In my first public remarks as @CFTC Chairman, I made clear that the agency would use the tools at its disposal to onshore crypto asset perpetuals. Today, the @CFTC delivered on that commitment.
This morning, the @CFTC took historic action to permit the listing of a true bitcoin…
— Mike Selig (@ChairmanSelig) May 29, 2026
Source: @ChairmanSelig on X
On June 18, 2026, the CFTC and SEC jointly sought public comment to further clarify and harmonize derivatives product definitions and jurisdictional frameworks. That request for comment is the clearest current policy mechanism through which APEC’s dual-oversight model could be formalized.
What a regulated U.S. perpetuals venue could change
Perpetual futures trading currently happens almost entirely on offshore exchanges beyond U.S. regulatory reach. A domestically licensed venue could appeal to institutional participants and compliance-sensitive firms that have avoided offshore perpetuals due to legal risk.
The broader crypto market provides context for the timing. Bitcoin traded at $63,087, down 1.8% over 24 hours, while the Fear & Greed Index sat at 15, indicating extreme fear. U.S. regulators have been moving to formalize crypto derivatives rules even as market sentiment remains subdued.
Implications for U.S. crypto market infrastructure
APEC’s filing focuses on equity perpetuals rather than crypto perpetuals, which distinguishes it from recent CFTC approvals for bitcoin-linked contracts. If approved, it would create a new product category that bridges traditional equity markets with derivatives infrastructure that originated in crypto.
That positioning could intensify competition among U.S. exchanges. Regulated derivatives venues would face pressure to expand product lines, while the regulatory framework APEC is seeking could become a template for other applicants. Separately, U.S. regulators face their own deadlines on stablecoin rules under the GENIUS Act, illustrating the pace at which crypto-adjacent regulatory frameworks are advancing.
Political and conflict-of-interest questions the report raises
Sen. Kirsten Gillibrand has been one of Congress’s most active voices on crypto legislation, co-authoring multiple bills aimed at establishing regulatory clarity for digital assets. Her son building a company that would directly benefit from the regulatory frameworks she has championed raises immediate questions about optics and governance.
To be clear, the research brief contains no evidence of wrongdoing, improper coordination, or violations of Senate ethics rules. The question is one of perception: a lawmaker’s family member is building a business in a sector where that lawmaker has significant legislative influence.
Disclosure, recusals, and public scrutiny remain open questions
Whether Sen. Gillibrand has recused herself from any legislative activity related to perpetuals exchanges, or whether Theodore Gillibrand’s venture has been disclosed in financial filings, are questions the available evidence does not answer. These are issues that congressional ethics watchdogs and journalists will likely investigate as the story develops.
The situation has parallels to broader scrutiny of governance transparency in crypto-adjacent organizations, where leadership ties and potential conflicts of interest draw public attention regardless of whether formal rules have been broken.
FAQ: Key questions about the Gillibrand-linked perpetuals exchange report
What is a perpetual futures exchange?
A perpetual futures exchange lists derivative contracts that let traders take leveraged long or short positions without an expiration date. Unlike traditional futures, perpetuals never settle, instead using periodic funding rate payments to keep the contract price aligned with the underlying asset.
Why does APEC want both CFTC and SEC oversight?
APEC plans to list perpetuals tied to individual stocks and equity indices. Because those underlying assets are securities regulated by the SEC, while the derivative contracts themselves fall under the CFTC’s jurisdiction, APEC is seeking approval from both agencies to avoid jurisdictional challenges.
Is the exchange already approved or operational?
No. APEC has presented its proposal to the SEC-CFTC Harmonization Initiative and is seeking capital to support the licensing process, but it has not received a Designated Contract Market license from the CFTC or any formal approval from the SEC.
What products would APEC list?
According to its SEC-posted presentation, APEC intends to list perpetual futures on single-name equities and stock indices, not cryptocurrency perpetuals.
Has APEC’s $300 million valuation been confirmed?
No. The $300 million valuation comes from two anonymous sources cited by Fortune and has not been independently verified in a public filing. The $30 million fundraise led by Lux Capital was confirmed by a Lux spokesperson.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making any investment decisions.
