The Commodity Futures Trading Commission (CFTC) has granted approval for Coinbase and Kalshi to offer perpetual cryptocurrency futures contracts to investors in the United States, a pivotal development in the nation’s cryptocurrency derivatives landscape.
This decision marks a significant milestone for both the cryptocurrency sector and regulatory bodies at the federal level. Perpetual futures, often referred to as “perps,” represent some of the most actively traded crypto derivatives in the market. Unlike traditional futures contracts, which have set expiration dates, perpetual futures allow traders to hold positions indefinitely without the need to roll over contracts. This flexibility has made these financial instruments a major contributor to trading volume in the global crypto markets, which until now largely operated beyond the jurisdiction of U.S. regulations through offshore exchanges.
On May 29, both Coinbase and prediction market operator Kalshi announced their intention to launch these perpetual futures products following CFTC approval. The agency’s decision effectively transitions these products from a gray regulatory area into a structured U.S. framework that complies with federal derivatives laws. Alongside this approval, the CFTC released a policy statement indicating that any future perpetual contracts tied to assets not currently approved will be subject to a detailed case-by-case assessment.
The significance of this development is underscored by the fact that perpetual futures account for a notable portion of global cryptocurrency trading activity. In 2025, perpetual futures volume was reported to have reached $61.7 trillion, marking a 29% increase from the previous year. Advocates within the industry assert that a regulated domestic trading venue will enable U.S. institutions and retail investors to access products previously limited to offshore exchanges, which often operate with less regulatory clarity.
Coinbase sought a no-action letter from the CFTC to allow U.S. customers to engage in offshore perpetual futures markets via Deribit, a Dubai-based derivatives exchange acquired by Coinbase last year. In response, the CFTC provided a comprehensive 16-page policy document outlining a framework that permits this activity within less than 24 hours.
As a result of this approval, Coinbase customers will be able to access a diverse array of perpetual futures contracts linked to digital commodities traded on Deribit, such as Bitcoin, Ethereum, Solana, Dogecoin, and other cryptocurrencies. However, the exchange has not yet disclosed which specific assets will be available to U.S. customers.
Kalshi has also received clearance to offer Bitcoin perpetual futures directly within the U.S. market. This move represents an expansion beyond the company’s original focus on prediction markets and into the broader derivatives space.
Nonetheless, these approvals prompt concerns related to investor protection and market risk. Perpetual futures often allow for exceedingly high leverage levels, with some products enabling traders to manage positions valued at up to 50 times their initial investment. This leverage can magnify potential profits but also significantly increase the risk of substantial losses. Critics caution that such products are among the riskiest available to retail investors, as minor fluctuations in the market can lead to immediate liquidations, potentially erasing entire positions.
The concern over leverage-induced liquidations is not unfounded. For instance, during a period of heightened volatility last year, approximately $19 billion in crypto positions were reportedly liquidated in mere moments due to automatic triggers in leveraged trades. Such scenarios have amplified existing worries among regulators and advocates about the capacity of retail investors to fully grasp the risks involved in trading highly leveraged derivatives.
Despite these concerns, the CFTC’s decision exhibits the agency’s increasing willingness to incorporate cryptocurrency derivatives into the regulated financial framework of the U.S. By formalizing a structure for perpetual futures, regulators appear to align their strategy with the principle that bringing these products onto U.S. soil and under federal supervision is preferable to allowing access through unregulated offshore platforms beyond U.S. oversight.
Industry experts anticipate that other exchanges will likely pursue similar authorizations based on the framework established by the CFTC’s response to Coinbase, potentially accelerating the formation of a regulated U.S. market for one of the most popular—and often controversial—trading products in the cryptocurrency domain.
