CFTC Opens Door to Perpetual Crypto Futures Trading in US
The Commodity Futures Trading Commission has cleared the way for Coinbase and Kalshi to offer perpetual cryptocurrency futures contracts to U.S. investors, marking a significant expansion of the domestic crypto derivatives market.
The approvals represent a milestone for both the crypto industry and federal regulators. Perpetual futures, commonly known as “perps,” are among the most heavily traded crypto derivatives globally. Unlike traditional futures contracts, they have no expiration date, allowing traders to maintain positions indefinitely rather than periodically rolling contracts forward. The products have become a dominant source of trading volume in global crypto markets but until now have largely operated outside the United States through offshore exchanges.
Coinbase and prediction market operator Kalshi announced May 29 that they would introduce perpetual futures products following CFTC approval. According to Reuters, the agency’s action effectively moves the products from a regulatory gray area into a formal U.S. framework governed by federal derivatives laws. At the same time, the agency issued a policy statement clarifying that any future perpetual contracts tied to assets beyond currently approved listings will be subject to case-by-case review.
The development is particularly significant because perpetual futures account for a substantial share of global crypto trading activity. According to CryptoQuant, perpetual futures volume reached $61.7 trillion in 2025, up 29% from the previous year, per Reuters. Industry advocates argue that providing a regulated domestic venue will allow U.S. institutions and retail investors to access products that previously required dealing with offshore exchanges that often operated with less regulatory transparency.
According to Decrypt, Coinbase submitted a letter to the agency seeking a no-action letter that would allow the exchange to provide U.S. customers with access to offshore perpetual futures markets through Deribit, the Dubai-based derivatives exchange Coinbase acquired last year. Less than 24 hours later, the CFTC responded with a detailed 16-page policy document outlining a framework that permits the requested activity.
The approval effectively enables Coinbase customers to access perpetual futures contracts tied to a broad range of digital commodities traded on Deribit, including products linked to Bitcoin, Ethereum, Solana, Dogecoin and other crypto assets. Coinbase has indicated it has not yet finalized which specific assets it will make available to U.S. customers.
Kalshi, meanwhile, received approval to offer Bitcoin perpetual futures directly in the United States. The move expands the company beyond its core prediction market business and into the broader derivatives sector.
Read more: Minnesota Becomes First State to Ban Prediction Markets, Prompting CFTC Lawsuit
The approvals raise familiar concerns about investor protection and market risk. Perpetual futures typically permit extremely high levels of leverage, with some products allowing traders to control positions worth up to 50 times their initial investment. While leverage can magnify gains, it can also rapidly amplify losses. Critics argue that the products are among the riskiest instruments available to retail investors because relatively small market movements can trigger liquidations and wipe out entire positions.
Decrypt noted that leverage-driven liquidations have repeatedly destabilized crypto markets. During a period of sharp volatility last year, approximately $19 billion in crypto positions were reportedly wiped out within minutes as leveraged trades were automatically liquidated by exchanges. Such episodes have fueled longstanding concerns among regulators and investor advocates that many retail participants may not fully understand the risks associated with highly leveraged derivatives trading.
The CFTC’s decision nonetheless reflects the agency’s growing willingness to integrate crypto derivatives into the regulated U.S. financial system. By establishing a formal framework for perpetual futures, regulators appear to be betting that bringing the products onshore and under federal supervision is preferable to allowing U.S. investors to continue accessing them through offshore venues beyond the direct reach of U.S. oversight.
Industry observers expect other exchanges to seek similar authorization using the framework established by the CFTC’s response to Coinbase, per Decrypt, potentially accelerating the growth of a regulated U.S. market for one of the crypto industry’s most popular—and controversial—trading products.
