The U.S. Commodity Futures Trading Commission (CFTC) has made significant strides in expanding American traders’ access to the cryptocurrency market by approving the first true bitcoin perpetual futures contract on a U.S. exchange. The approval, granted to KalshiEX, LLC’s BTCPERP contract, allows traders to engage with a product that references the spot price of bitcoin on Kalshi’s regulated designated contract market. In tandem with this approval, the CFTC issued a no-action relief to Coinbase Financial Markets, enabling the platform to offer digital commodity derivatives, including access to international perpetual futures and options for its U.S. customers.
Perpetual futures, which lack an expiration date, allow traders to speculate on the price fluctuations of assets without directly owning them. This type of contract has grown to become central in crypto derivatives trading, with most of this activity historically occurring on offshore platforms. CFTC Chair Michael Selig emphasized the importance of this move, describing it as a watershed moment for the structural integrity of U.S. markets. In a statement posted on social media platform X, Selig remarked, “This morning, the CFTC took historic action to permit the listing of a true bitcoin perpetual contract by a CFTC‑registered exchange, charting a path for one of the most liquid segments of the crypto asset markets to exist within the US regulatory framework.”
Coinbase’s CEO Brian Armstrong also highlighted the implications of these announcements, pointing out that U.S. traders had been largely excluded from approximately 80% of global crypto markets associated with perpetual futures and options. He expressed his enthusiasm on X, stating, “Big day for our US‑based traders, and for Coinbase!” Through Coinbase Financial Markets, institutional clients can now access a variety of global perpetual futures and options venues, including Deribit, which holds a substantial open interest in bitcoin options.
The recent approvals coincide with a broader advisory from the CFTC regarding 24/7 trading, clearing, and settlement of derivatives. Although this advisory lacks formal rulemaking status, it sheds light on the CFTC’s perspective regarding continuous trading markets, which have been increasingly accessible via blockchain and decentralized technologies. Commission staff noted a rising interest in 24/7 trading, particularly within the digital assets space, and suggested that outlining the associated risks could promote market robustness and foster responsible innovation.
Collectively, the approval of the Kalshi contract, alongside Coinbase’s no-action relief and the advisory on round-the-clock trading, serves as a strategic framework for how U.S.-regulated entities can engage with and potentially integrate into the global perpetual market. Kalshi will be able to offer a fully regulated bitcoin perpetual contract on its exchange, while Coinbase provides a conduit for U.S. clients to tap into significant offshore liquidity without the need for convoluted corporate arrangements.
Under the leadership of Chair Selig and the prior administration, the CFTC has shifted from an enforcement-heavy approach to a more structured method aimed at incorporating vital segments of the crypto market within U.S. regulation. Earlier this year, the CFTC and the SEC collaboratively presented a new framework for categorizing crypto assets, while the SEC is in the process of developing comprehensive rules for tokenization. Additionally, Paxos has recently received approval to use blockchain technology for clearing U.S. equities, marking further advancements in the intersection of traditional finance and blockchain innovation.
